KYC

KYC (Know Your Customer) is the process of verifying client identity, address and beneficial ownership before onboarding to satisfy AML and regulatory rules.

KYC is mandatory in most regulated industries — accounting, legal, banking, real estate. It is the document-collection step that opens an engagement.

A KYC pack typically includes a government ID, an address proof, beneficial ownership confirmation for corporate clients, and source-of-funds evidence where required.

Standard KYC requirements follow the customer due diligence (CDD) model: identify the client, verify identity against reliable independent documents, identify beneficial owners for entities, understand the nature and purpose of the relationship, and keep monitoring it over time. Enhanced due diligence adds source-of-funds and source-of-wealth checks for higher-risk clients.

KYC applies to accountants directly in many jurisdictions: accounting firms are reporting entities under the NZ AML/CFT Act, the UK Money Laundering Regulations and the EU anti-money-laundering directives, among others. In practice that means collecting a KYC pack before onboarding and refreshing it on a risk-based cadence — exact obligations depend on the jurisdiction and the services provided.

In RequestLoops, KYC is modelled as a request template per client type: every required item is a structured field, file or signature. Reminders chase the missing items, AI validation flags blank pages or wrong-page uploads, and submitted documents sync to Drive or OneDrive for archival.

Recurring KYC reviews run on an annual cadence using RequestLoops recurring runs.

KYC document checklist

• • Government photo ID (passport or driver licence) for the client
• • Proof of address dated within the last 3 months (utility bill, bank statement)
• • Company register extract for corporate clients
• • ID for each beneficial owner holding 25% or more
• • Trust deed for trusts
• • Source-of-funds evidence where the risk rating requires it
• • Signed engagement letter or consent form

FAQ

What are the standard KYC requirements?

Identify and verify the client with reliable documents (photo ID plus proof of address), identify beneficial owners of entities, understand the purpose of the relationship, and monitor it on an ongoing basis. Higher-risk clients require enhanced due diligence, including source-of-funds evidence. Exact requirements vary by jurisdiction and industry.

What does KYC involve for accountants?

Accounting firms in most regulated jurisdictions must run KYC before onboarding: collect ID, proof of address and beneficial ownership documents, risk-rate the client, and refresh the pack periodically. See the RequestLoops KYC/AML document checklist guide for the New Zealand AML/CFT version of this workflow.

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