KYC: The customer identity verification process

The client submits a valid photo identification document (passport, national identity card) and recent proof of address. Additional documents, such as company statutes or registration documents may be required for legal entities.

Document verification is conducted using automated or manual systems, followed by data validation from internal and external databases.

In remote onboarding, this step also relies on conducting additional due diligence (Article R561-5-1 of the CMF). This diligence can be demonstrated by:

• An initial transfer from an open account held with a financial institution established in a Member State of the EU or the European Economic Area.
• A qualified or advanced signature.
• A facial scan RIVPs (Remote Identity Verification Providers). The RIVPs certification issued by ANSSI is a mark of trust, quality, and reliability of the solution used.

Risk is evaluated based on profile analysis. By cross-referencing the provided information with international databases and sanctions lists, this step ensures that the client is not involved in illegal activities. At this stage, identifying Politically Exposed Persons (PEPs), considered high-risk due to their ability to influence acts of corruption and money laundering, is critical.

This involves regularly monitoring client transactions and behaviours. Analysing transactional patterns then helps identify any suspicious activity and adjust risk profiles. Financial institutions thus remain compliant with current regulations and protect themselves against financial and reputational risks.