As a sponsored party which parties do we share our customers’ KYC information with, if any?

If the sponsor is sponsoring you for license/regulatory coverage in the US, then the client legally belongs to them, this means, the KYC data lies with them. Unlike Europe and (UK, pre-Brexit), the PII (Personally Identifiable Information) was passport-able. That is not applicable in the United States. This implies that customers signed up in the United States, their KYC information belongs to the PLH (Principal License Holder), unless you are an Agent, in which case, you ‘may’ have the right to KYC the customer, but the PLH will always retain the right to have KYC information. 

If you interact with a customer outside the United States (in-bound or out-bound) transaction flow, then the PLH has the right to ask you for KYC data to know the counterparty of the transaction. 

Suggested Video(s)

—

This page was last updated on January 16, 2023.

–

Related posts:

  1. There are a merchant account application processing fee and solution provider one-time fee. Are these two different parties?
  2. Does this service require us to pay monthly fees or we are required to market the app and bring customers on board or both?
  3. Is there a non-compete clause for the customers that we bring in?
  4. Personal KYC Information
  5. As a fresh startup, what is the probability of being sponsored by a bank or an exchange company?
Share with others...