Sydecar’s banking infrastructure is supported by Grasshopper, a client-first digital bank built for the business and innovation economy and specializing in leading-edge technology for fintechs. Grasshopper is a federally-chartered commercial bank and member of the Federal Deposit Insurance Corporation (FDIC). Grasshopper’s focus on technological innovation, dedication to risk management, and extensive expertise working with venture capitalists makes them an ideal partner for Sydecar.
Grasshopper, like all financial institutions, has policies in place to evaluate risk and to detect and report suspicious activity. Working alongside Grasshopper, 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.
Timeline Expectations:
Once an investor provides the necessary documentation, a review usually happens within one business day after all required information is submitted.
We cannot accept money from an investor until the diligence process has been completed. If an individual is completing their first investment on Sydecar, we encourage them to complete the KYC process in tandem or prior to funding so as not to cause any delays in the closing process.
We are dedicated to ensuring that this process does not add friction or delays for our customers. We appreciate your attention and responsiveness to help us complete KYC verification as efficiently as possible.