What is required to pass KYC?

Sydecar's banking partners, like all financial institutions, have policies in place to evaluate risk and to detect and report suspicious activity. Working alongside our partners, Sydecar requires KYC/KYB (Know Your Customer and Know Your Business) verification and risk-based monitoring of all investors prior to any money movement.

Sydecar has developed risk-based criteria to determine additional diligence requirements during onboarding. For the majority of investors, Sydecar can fulfill these regulatory requirements using the information provided during the onboarding process and, as needed, through additional identification documents.

If an investor or entity doing business with Sydecar operates, invests, or banks in a country determined to be high risk, they will be subject to additional diligence requests and be required to describe the entity’s global reach and business purpose, anticipated account activity (both volume and type), anticipated countries where the entity will invest, and the occupation of any beneficial owners. They will be additionally required to provide information related to the investor’s source of funds and wealth by providing financial statements, banking references, and/or any information relevant to negative news (adverse media) searches.

Scope of KYC/AML

Our compliance program requires that we perform KYC/AML checks on all Deal Leads, Investors, and 25% UBOs. KYC/AML checks will be retriggered if a user updates their profile in our app. There are two ways that a user can pass KYC:

Documentary: We obtain documentary proof that verifies a customer’s identity. This can include an identification document (passport), TIN verification (SSN card or tax form), address verification (utility bill, bank statement, etc.), articles of incorporation, etc.
Non-Documentary: Non-documentary verification is where our KYC vendor's data sources come into play. Every time we send a customer’s information to our KYC vendor, that customer will go through a ‘Journey’ that has been set up in our partner's platform. The vendor will check the customer’s information against a variety of data sources including MidDesk, GDC Worldview, and LexisNexis