KYC: the details
It is an obligation under anti-money-laundering rules, which in Spain are set out in Law 10/2010. It reaches banks and payment institutions and also other obliged entities, such as life insurers, real estate firms, notaries and tax advisers. It includes identifying the customer with a reliable document, knowing the beneficial owner when the customer is a company, understanding the purpose of the relationship and monitoring it on an ongoing basis.
In banking and fintech, digital onboarding has turned it into a product problem: capture the document, check that it is authentic, verify that the person presenting it is its holder and screen against sanctions lists, all in minutes and without losing the customer along the way. The final decision on doubtful cases belongs to an analyst, and everything that was checked has to be documented.