What is KYC process?

WHAT is KYC and HOW to upload KYC documents on eBonza
to open a Merchant account with Lemon Way?


When you are opening a new account at a bank or payment institution, such as Lemon Way, you might hear talk of KYC. What is KYC and why is it important when choosing your payment solution?

KYC stands for Know Your Customer. KYC is a regulatory and legal requirement for banks and other related institutions to identify and verify the identity of their clients. The term can also be used by businesses to denote their own similar processes. 

Banks undertake such processes to comply with various anti-money laundering (AML) regulations and also regulations countering the financing of terrorism (CFT). KYC is a way to prevent banks from becoming involved with criminal or terrorist activity.

Banks accomplish KYC by verifying various documents obtained from reliable sources. These documents may include the passport or identity card of an individual, the business registration for a company and utility bills for proof of address.
The bank then needs to be sure where any funds are coming from. This involves knowing the type of business and knowing where existing wealth originated.
The process does not end with the identification with the person or company and source of wealth, instead, it continues with the bank or institution keeping an eye on activity to be sure that it fits with the profile and expectations. The goal is to identify and investigate suspicious activity.
In addition to protecting the banks or institutions from inadvertently being used for criminal or terrorist activities, the KYC process also protects the clients as it helps avoid instances of identity theft and fraudulent activities on the accounts.
At Lemon Way, they have a team dedicated just to KYC. If you have any questions about KYC, contact directly Lemon Way team here: https://www.lemonway.com/support/contact-us/

 

OTHER TOPICS WHICH SELLERS NEED TO KNOW:

How to create a payment account and what information is required?
 
Payment accounts (natural person or business) can be created through the API  in the eBonza system. 
To create a payment account go to your Account → Account information, fill all necessary data – Company and Personal information, Bank information and click on the KYC field. There you need to upload all necessary documents to create Merchant account with Lemon Way to be able to receive and withdraw payments from buyers. 
The required information by Lemon Way (mandatory & recommended) to create a payment account are already inserted into our registration form on eBonza.
Payment accounts are by default opened in the KYC1 status, with limits in terms of number/amount of operations (Money-In, P2P, Money-Out).
 

What is the average KYC verification time from Lemon Way site?
 
Average standard KYC verification time for a payment account is 24 hours for a natural person payment account, and 48 hours for a business payment account.

How to get the reasons for rejection of a KYC document?
 
Reasons for rejection of a document by Lemon Way KYC experts are systematically detailed in the comment field of the concerned document. This comment is not sent to you, but to eBonza as Partner of Lemon Way and is obtained through the API. We do not need to tell you the reason why your documents were rejected by the bank.

 

What documents are required to move a payment account to the KYC2 status?

In our system immediately after registration process with eBonza and login back to your account, you need to check your Company & Personal information, enter your bank details and proceed to upload necessary documents to be able to receive the payments and get the money out that means making a transfer on your bank account.
Moving a payment account to the KYC2 status requires the upload of KYC documents in the concerned payment account, as well as their verification by Lemon Way KYC experts.

Standard documents to be provided depending on the type of payment account are listed below: 

UNLISTED COMPANY (ISCOMPANY=YES)
•A valid proof of ID (ID card both sides, passport) of the legal representative of the company holding the payment account. /Note: If the document has been issued outside the EU or EFTA or EEA, additional proof of ID (resident permit, driving licence) is required/
• A valid proof of ID (ID card both sides, passport) for each ultimate beneficiary owner owning more than 25% of the company shares. /Note: If the document has been issued outside the EU or EFTA or EEA, additional proof of ID (resident permit, driving licence) is required/
• The certificate of incorporation (less than 3 months) for the company holding the payment account
• The memorandum or articles of association of the company holding the payment account
• An official signed letter from the company legal representative with details of shares (if not in the memorandum)
• A bank statement (PDF or image format) including name as well as IBAN (only necessary for Money-Out transactions) of the company holding the payment account

COMPANY LISTED IN A EU COUNTRY OR IN AN EQUIVALENT THIRD COUNTRY (ISCOMPANY=YES)
•A valid proof of ID (ID card both sides, passport) of an authorized representative of the company holding the payment account. If the document has been issued outside the EU or EFTA or EEA, additional proof of ID (resident permit, driving licence) is required
[If not listed in the certificate of incorporation of the company, the quality - authorized representative - of the natural person identified should be publicly verifiable (ex: LinkedIn)]
•The certificate of incorporation (less than 3 months) for the company holding the payment account
•A bank statement (PDF or image format) including name as well as IBAN (only necessary for Money-Out transactions) of the company holding the payment account

SELF-EMPLOYED (ISCOMPANY=YES)
• A valid proof of ID (ex: ID card, passport) of the payment account holder. If the document has been issued outside the EU or EFTA or EEA, additional proof of ID (resident permit, driving licence) is required
• Proof of address (electricity, gas, water, internet, landline or mobile phone invoice/payment schedule, home property insurance document/rent receipt, housing certificate issued by the city hall, tax assessment no older than 1 year) less than 3 months old of the payment account holder
• The latest certificate of incorporation of the payment account holder
• A bank statement (PDF or image format) including first & last name as well as IBAN (only necessary for Money-Out transactions) of the payment account holder

ARTISAN (ISCOMPANY=YES)
•A valid proof of ID (ex: ID card, passport) of the payment account holder. If the document has been issued outside the EU or EFTA or EEA, additional proof of ID (resident permit, driving licence) is required
• The certificate (less than 3 months) from the chamber of trade of the payment account holder
• A bank statement (PDF or image format) including first & last name as well as IBAN (only necessary for Money-Out transactions) of the payment account holder


What are the conditions for KYC documents uploading in the system?

Each document needs to be in the appropriate slot:
· Use "Upload File" to upload documents into a Wallet, with a file size smaller than 10 Mb.
· Authorized formats are PDF, JPG, JPEG, BMP, GIF, TIF, TIFF or PNG.
· Please don't askto add .Doc or .XML files. For security reason, only those documents types are accepted.

To ensure optimal KYC processing times, we recommend you to follow the below advice:
· Send KYC documents for a payment account only when all required documents are available 
· Documents should be still valid/not expired (ex: passport, ID)
· Documents should not be cut, unreadable, or with some information hidden
· Documents should be of good quality (ex: no flash when taking pictures of Passport, ID, etc.), preferably in colour (grey accepted/no black & white)
· Documents have to be complete (ex: both sides of the ID)
· Documents should be signed when applicable (ex: company statuses)
· One file per document type rather than one file with all document types