Know Your Business (”KYB”) is the due diligence review of your organization and your prepaid program. This process verifies that as a prepaid reward program sponsor, you are a legal entity permitted to issue prepaid rewards
To combat the rise in money laundering, international terrorism, fraud and other activities of non-compliance, banks require every business owner creating a prepaid rewards program to verify their identity. Know Your Business (”KYB”) is the due diligence review of your organization and your prepaid program. This process verifies that as a prepaid reward program sponsor, you are a legal entity permitted to issue prepaid rewards in the currencies selected for the membership group of your program. Failure to provide the necessary information will result in the rejection of your application to issue prepaid cards.
Here's the mandatory information you will need to supply:
- Your business information (name, address, contact information)
- Company Registration # or Tax ID (e.g. TIN, VAT, EIN)
- Stock Ticker (if your company is publicly traded)
- Names and titles of all business executives: All officers/Signers of
Corporation, CEO, CFO, COO, VP, MD and/or equivalent. - Company Ownership Details – name, address and birth date for any
person or entity who owns 25% or more of a privately held company.
This is required for all businesses listed as “Private”. If a company is
publicly traded, a Controlling Officer may be designated for whom
personal identifying details may be required to authenticate the
request. - Direct contact details for a Controlling Officer/Program
Administrator/Project Stakeholder of the reward program operated
by the company. - Sales forecasts for the prepaid products being issued
- Program/recipient information (e.g. first order date, location of
recipients, etc.) - Program marketing information How is the product going to be
promoted? Any public facing promotion is subject to issuer rules and
approvals.
Failure to supply this information will result in the financial institution rejecting your
application to issue prepaid cards.
Get started by submitting your KYB form here.
When submitting a KYB application, additional forms & documentation are often required.
- UBO (Ultimate Beneficial Owner) Declaration: This form identifies
and provides details about the individuals who ultimately own or
control the company. - Corporate Structure Chart: A detailed diagram showing the
ownership structure of the company, including subsidiaries and
parent companies. - Certificate of Incorporation: A document issued by a governmental
authority or agency that verifies the company's legal formation. - Articles of Association (or equivalent): Documents that outline the
company's constitution and governance framework. - Proof of Address for the Company: Utility bills, lease agreements, or
other official documents verifying the company's physical address. - Director Identification and Verification: Copies of identification
documents and proof of address for the company's directors, along
with their contact details. - Business License: If applicable, a copy of the business license or
permit required for operating in a specific industry or jurisdiction. - Financial Statements: Recent financial statements, such as balance
sheets, income statements, and cash flow statements. - Tax Identification Number (TIN): Documentation providing the
company’s tax identification number for verification purposes.
These additional forms and documents are typically required to provide a complete picture of the business, its ownership, and its compliance with relevant regulations. Generally, additional documentation is requested when the company making the submission is newly established business, and/or has no or limited history with the authenticating software.
FAQs
Why do I need to supply such detailed information?
To ensure your prepaid program will not be used for money laundering, international terrorism financing or fraud, global financial institutions now require us to collect the identity information of all clients operating a prepaid rewards program.
Will I, or my company’s officers, be held personally liable for member fraud?
No, you will not be held personally liable for member misuse of prepaid cards. But you are liable for the accuracy of your identity information, program description and ownership authenticity.
The last time I launched a prepaid program I did not need to provide this information. Why now?
These mandatory identity verification laws were created in response to recent international financial fraud incidents and have increased in scope as requirements
have been refined by governing bodies.
Why is a KYB required?
The Financial institutions we partner with to supply prepaid cards requires us to establish the identify and legitimacy of the business.
Where can I find out more about these requirements?
Your GRS Client Success Manager can walk you through the application process. You can also learn more here:
- US Bank Issuance Regulations
- European Bank Issuance Regulations
- Canadian Bank Issuance Regulations
- U.S. & Canada Market Guidelines (Visa)
- European & Australian Market Guidelines (Mastercard)
For questions enter a help desk ticket or contact your Account Manager.