KYC (Know Your Customer)
A KYC (Know Your Customer) process involves verifying the identity of organizations or individuals within the context of financial services. Its purpose is to prevent money laundering, terrorist financing, or fraudulent activities – which is why KYC is a key component of regulatory frameworks such as Anti-Money Laundering (AML) regulations.
KYC is also relevant in digital fundraising: When donations are processed through software solutions like Soulclick and Soulclick onboards payment contracts on behalf of a charity, we are legally required to carry out a KYC procedure. This includes reviewing the following information:
- Legal form and authorized representatives of the charity
- Commercial register excerpt or organizational statutes
- Valid legal notice (impressum) and contact details
- Proof of identity of the responsible individuals
KYC is not only a regulatory requirement – it also builds trust with donors. It ensures that every donation form is operated by a legally verified organization.