If you're a Sponsor Organization or a Champion Organization setting up an account, it's important to complete the Know Your Business (KYB) and Know Your Customer (KYC) process with accuracy. This process ensures your organization complies with federal regulations for preventing fraud and money laundering. Taking it seriously from the beginning can save time and effort by avoiding rejections or requests for additional documents.
What You’ll Need
To complete KYB/KYC verification, ensure you gather the required information for both your business and its beneficial owners. Missing or incorrect details can lead to delays or rejections.
For Your Business:
Full Legal Name: Must match all submitted documents.
Taxpayer Identification Number (TIN): Ensure the number is correct and belongs to your business.
Physical U.S. Address: PO boxes, virtual mailboxes, or mail centers are not accepted. You’ll need a verified physical address.
For Beneficial Owners and Control Persons:
This applies to individuals who own 25% or more of the business or have significant control over it.
Full Legal Name
Date of Birth
Physical U.S. Address
Government-Issued ID:
For U.S. Persons: Social Security Number (SSN) or TIN
For Non-U.S. Persons: Passport details, including a copy of the passport, country of issuance, and address verification.
Common Document Types
Here’s a list of documents that may be requested during the process. Ensure these documents are complete, accurate, and up to date.
Certificate of Incorporation (COI)/Articles of Incorporation (AOI):
This is your proof of incorporation. Make sure it matches the name of the business on the application.
Employer Identification Number (EIN) Verification:
This document verifies your business’s EIN. Upload the correct document, such as the IRS EIN confirmation letter, and ensure it matches your application.
Proof of Address:
Acceptable documents include utility bills, lease agreements, or bank statements that clearly show the business's physical U.S. address.
Take It Seriously: Tips for Success
Submitting incomplete or incorrect information can block your progress. Follow these tips to avoid issues:
Double-Check Documents Before Uploading: Verify that all submitted documents match the details provided on the application (e.g., name, address, EIN).
Use a Valid Phone Number: Avoid using VoIP or fake numbers, as these will trigger automatic denials. Provide a legitimate U.S.-based number.
Provide a Physical Address: Ensure your business address is a verified, physical U.S. address. Mail centers, PO boxes, and virtual addresses will be rejected.
Know the Difference Between Documents: Upload the correct document type for each requirement (e.g., don’t upload an EIN document when asked for a COI).
Common Issues and How to Address Them
Here are the most frequent issues encountered during KYB/KYC, along with guidance on how to avoid or resolve them:
Issue | Description | Solution |
Non-Physical Address | Address provided is a PO box or mail center. | Provide a verified physical U.S. address. |
Wrong Document Upload: COI/AOI | Incorrect document submitted for proof of incorporation. | Ensure you upload the Certificate of Incorporation or Articles of Incorporation. |
Duplicate Applications | Organization submitted a prior application with conflicting details. | Ensure all details match prior submissions or provide an explanation for any changes. |
Fake Phone or Email | Phone number or email provided is invalid or fake. | Use a valid, working phone number and email address. |
VoIP Phone Number | Phone number flagged as VoIP. | Submit a different phone number that is not VoIP-based. |
Wrong Document Upload: EIN | An incorrect or incomplete document was uploaded for EIN verification. | Use the official IRS EIN confirmation letter. |
Name Mismatch: Application and EIN/COI | The business name doesn’t match across documents. | Provide name amendment documents if the business name has changed. |
Non-U.S.-Based Organization | The business is not registered in the U.S. | KYB/KYC is only for U.S.-based organizations. Ensure your business meets this requirement. |
Pro Tip: Be Prepared
The KYB/KYC process can be simple but if not done right from the beginning, can become rigorous. It ensures your organization is set up securely and complies with legal regulations. By submitting accurate and complete information on the first try, you can avoid unnecessary delays or additional document requests.
If you’re unsure about a document or requirement, reach out for clarification before submitting. Ensuring your application is flawless the first time is the fastest way to get verified and start using your account.
By following these guidelines, you can navigate the KYB/KYC process efficiently and confidently.