KYC depends on which aspects of the connected account?

KYC, or Know Your Customer, is a critical process that financial institutions and related entities use to verify the identity of their clients to ensure compliance with regulatory requirements. In the context of connected accounts on platforms like Stripe, KYC requirements hinge on several key aspects.

Focusing on country, business type, account capabilities, and service agreement is fundamental for KYC because each of these factors influences the level of risk associated with the account and the regulatory obligations that must be fulfilled.

• The country where the business operates determines the applicable legal and regulatory frameworks, which can vary significantly around the world. Different jurisdictions have unique compliance standards and thresholds for KYC procedures.

• The business type directly affects the risk profile and the nature of the KYC checks required. For example, a high-risk industry such as online gambling may face stricter scrutiny compared to a low-risk business like a consultancy.

• Account capabilities, such as the functionalities that the account will use (e.g., payment processing, receiving funds), can also influence KYC requirements. Certain functionalities may necessitate more stringent checks based on how money flows through that account.

• The service agreement outlines the specific terms and policies that the account holder agrees to, which can also incorporate KYC compliance measures