KYC

All the checks with which an institution identifies its clients, establishes their beneficial owners and assesses the risk of the relationship.

In practice

In a family office, KYC covers the family members, the companies, foundations and trusts, and the people acting for them. In practice, it consists of identification, establishing the beneficial owners, a risk assessment, screening against sanctions and PEP lists and a documented approval. The file is updated in a rhythm based on risk and whenever events occur – a new beneficiary, a move, a change of control.

Distinctions and common mistakes

KYC data quickly becomes outdated: expired identity documents, old addresses and missing tax residences are frequent audit findings. A common mistake is to repeat the full onboarding instead of updating the existing file in a targeted way.

Related terms

KYB

The application of KYC checks to companies and other legal entities, including their ownership and control structure.

Ongoing monitoring

Continuous review of a business relationship and updating of client data throughout its duration.

Mentioned in these guides

• KYC for trusts: which documents are requiredWhich documents banks and family offices require for a trust: trust deed, letter of wishes, information on settlor, trustee, protector and beneficiaries.
• Swiss Form A: establishing the beneficial ownerWhen Swiss banks require Form A, what it contains, how it differs from Forms K, T and S and how family offices maintain it efficiently across banks.
• Compliance software for independent wealth managersCompliance software for independent wealth managers: client due diligence, risk assessment, periodic reviews and an audit trail that supervisors can follow.
• KYC and anti-money laundering in the multi family officeKYC in a multi family office: identification, beneficial owners, risk-based assessment and periodic review – step by step and documented for audit.
• Software for multi family offices in SwitzerlandMulti family office in Switzerland: FinIA licence, supervisory organisation, AMLA due diligence and data protection – and how FLIORE maps these duties.
• The Due Diligence Act (SPG) in LiechtensteinWhat Liechtenstein's Due Diligence Act requires: identification, beneficial owners, business profile, monitoring and reporting suspicions to the FIU.
• The KYC process in a family office: from onboarding to periodic reviewThe full KYC process in a family office: pre-screening, identification, risk rating, approval, ongoing monitoring, event reviews, periodic review and exit.
• Evidencing source of wealth: the evidence matrixWhich documents evidence the source of wealth and funds – by source: earnings, sale of a business, inheritance, gift, real estate, investment income, crypto.