icone active funds managers KYC and Risk Based Assessment (RBA)

As an investment manager, you are responsible for ensuring that every investor undergoes proper KYC checks before investing. This is a legal requirement under anti-money laundering (AML) regulations.

Understanding KYC Responsibilities

KYC, or Know Your Customer, is essential for regulatory compliance. Before accepting any investment, a manager must collect and verify key information, including:

  • Investor details: Passport, ID, and proof of address

  • Source of funds: Where the money is coming from before being transferred

  • Source of wealth: How the investor generated their wealth.

  • Tax compliance: Ensuring taxes have been properly paid on the invested capital

How FundNav® Simplifies KYC.

FundNav® streamlines this process with an efficient 8-step system that ensures all investor subscription comply with AML laws.

Investor Onboarding & Information Collection

FundNav® simplifies onboarding by providing investment managers with a secure online tool. Managers send investors a unique link where they complete a tailored onboarding process based on their profile.

The required information varies depending on the type of investor:- Individual Investors must provide personal details, proof of identity (passport or ID), and proof of address.

  • Corporate Investors need to submit incorporation documents, shareholder registers, and financial statements.
  • Trusts and Foundations must disclose trust deeds, beneficiaries, and controlling persons.
  • Institutional Investors may have additional regulatory requirements based on their jurisdiction.

 

Verifying Investor Identity

 

The subscription form collects all essential investor details, including name, date of birth, address, and tax identification number (TIN). This ensures full compliance with financial regulations. 

Confirming Source of Wealth

 

Investment managers must document how an investor accumulated their wealth. FundNav® provides predefined categories for income sources and prompts investors for supporting details where needed.

Identifying Source of Funds

 

It is equally important to track where the funds are physically coming from. Whether using traditional bank transfers or cryptocurrencies, investors must specify the originating institution or exchange.

Tax Compliance & Regulatory Requirements

 

FundNav® ensures that tax compliance is verified before investment. This step confirms that all invested funds have been lawfully earned and taxed appropriately.

Conducting a Risk-Based Assessment

 

Once all information is collected, the Compliance Officer assesses the investor’s risk level. FundNav® automates this process, assigning an AML risk category and ensuring regulatory approval.

 

Ongoing Monitoring & Periodic KYC Reviews

 

AML regulations require periodic reviews of investor information. FundNav® automates this, sending timely reminders based on the investor’s assigned risk level.