Understanding Know Your Customer (KYC) Regulations in the United Kingdom

Know Your Customer (KYC) protocols are now required in the United Kingdom to uphold financial integrity and parallel the KYC rules the United States has implemented. 

Watch the Know Your Customer video walkthrough

KYC is the mandatory process of identifying and verifying a client's identity when initiating a business relationship. It extends beyond account opening, necessitating periodic reviews to uphold compliance standards over time. The KYC procedure is poised to undergo significant adjustments, impacting both existing and prospective customers.

Adherence to KYC regulations is becoming increasingly stringent for businesses within the UK. Existing customers are expected to provide documentation by September 2024, while new clients face a requirement as early as March 2024. The significance of this mandate is underscored by the impending sporadic audits, underscoring the need for meticulous record-keeping and procedural clarity.

Starting March 4, 2024, customers will be able to share KYC information with our carriers. 

Starting May 27, 2024, all new Long Code purchases will require an approved Regulatory Compliance (RC) bundle before buying.

Starting September 30, 2024, all new and existing UK long codes must be connected to an approved UK RC bundle to be able to send messages or make voice calls.

To purchase a UK Tracking Number, please submit a Number Request by navigating to Numbers > Buy Numbers > and clicking the Request a Number button. Once submitted, the carrier will review it in 1-2 days, and the Carrier Relations team will notify you once it has been approved. See the documentation requirements below. 

Documentation Essentials

Here is a comprehensive list of prerequisites for KYC compliance:

1. Registration Authority

Businesses are required to liaise with an authorized Registration Authority (RA), primarily facilitated through Companies House—a governmental body overseeing corporate registrations in the UK.

2. Company Registration Number (CRN)

A unique identifier issued upon incorporation, a CRN serves as the cornerstone of business identity, ensuring transparency and accountability in financial transactions.

3. Business Website Requirements

Detailed specifications about company information, contact details, privacy notices, and disclaimers are mandated, underlining the significance of transparent digital presence. This includes a cookie disclosure that should demonstrate the information being collected by the website's cookies. 

4. Address Verification 

Registered and emergency addresses are pivotal in facilitating communication and government correspondence and delineating organizational boundaries and responsibilities. This verification will comply with an entity's official address, such as where formal government correspondence is sent. 

5. Contact Information

Designation of authorized representatives and agency contacts serves to streamline communication channels, fostering accountability and accessibility within organizational hierarchies

The timeline for compliance unfolds progressively, commencing from March 4, 2024, and culminating in September 30, 2024. The phased rollout underscores the meticulous planning required to integrate KYC protocols into existing operational frameworks seamlessly.

As businesses brace for the impending regulatory landscape, the integration of KYC protocols necessitates strategic alignment and operational agility. While the regulatory landscape continues to evolve, embracing KYC mandates underscores a commitment to financial integrity and regulatory compliance. Prepare for KYC to become a worldwide initiative to uphold the financial integrity of all consumers in the global economy. 

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