KYC for Mutual Fund

In the era of pervading digitalization and globalization, all companies providing financial services need to conduct background checks on their customers. The respective verification techniques, including KYC, are called to prevent financial fraud.
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What is online KYC for mutual fund?

Whatever financial product or service a person is going to obtain, including buying units of mutual funds, they are required to undergo the Know Your Customer (KYC) process.

KYC aims to ensure that the potential investor is not involved in any kind of unlawful activity. In general, the technique comprises a customer identification procedure done by a financial institution where a customer or an investor is required to provide a set of mandatory documents for passing the process of identity verification.

Mutual funds fulfill KYC in order to crosscheck their investors’ identities. Every investor must complete this procedure before they are allowed to engage with a mutual fund. With the help of KYC, the market players fetch corresponding investors’ data to establish a single identity for each applicant.

Mutual funds utilize KYC records to connect the fund investments to various investors. Then, they maintain such KYC records on a centralized basis to enable the consolidation of all investments throughout the fund houses and deliver a Consolidated Account Statement displaying mutual fund transactions.

You should select a KYC-registered agency to conduct an online KYC for mutual funds—partner with KYCAID to do the job seamlessly and efficiently.

How to Do KYC for mutual fund online?
When undergoing eKYC for a mutual fund, an applicant has to perform two main things: fill out an online form and present all the necessary documents. The verification steps are as follows:
Confirming bank card legitimacy... identity verification procedure to confirm age and identity documents.
Database screening...
...a comprehensive database check to confirm an applicant is not on sanctions, wanted lists, or PEP lists.
Proof of funds checks...
...the source of funds verification to ensure money is legal, and other financial institutions check its source.
Proof of residence check... address verification to make sure an applicant is a resident of the jurisdiction where a mutual fund can provide its services.
Tax number...
...the step is necessary if a mutual fund has to pay profit tax for a client and act as a tax agent.
After finishing a KYC for mutual fund routine online, an applicant will receive a KYC identification number with the opportunity to share it with the selected investment platform. This is the time when a user can start investing.
Why is KYC for mutual fund obligatory?

KYC compliance is compulsory for investments in the financial sector. Customers that intend to make any investment with a mutual fund house need to confirm their KYC compliance with regard to mutual funds. This procedure is standard, and once it is completed, the results are applicable for other MF investments with various fund houses.

The KYC process is mandatory primarily because of security considerations. It helps to ensure that received investments do not have a suspicious nature and to prevent instances of money laundering and fraud. The technique is arranged to guarantee that all stakeholders provide their real names and personal information to eliminate the opportunity of any unpredictable circumstances in the future.

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Which documents
are required for paperless mutual fund KYC?
To apply for a KYC procedure, individual investors must submit a set of documents in order to verify their personal data with the fund house. The required list includes:
Proof of identity
Customers can submit their ID documents, like driver’s licenses, to authenticate their name.
Proof of identity
Proof of address
Customers who invest in mutual funds must present address proof to confirm their nationality and citizenship. An applicant can use utility bills or a passport to validate an address.
Proof of address
Facial verification
Applicant’s photographs serve as proof of identity to a mutual fund house.
Facial verification
Bank account details
This information is necessary for mutual funds to verify the applicant’s income and the status of an account, which will be utilized for investing in the fund house.
Bank account details
How to do KYC for mutual fund online with KYCAID?

KYCAID provides unrivaled identity verification software for all kinds of industries including mutual fund KYC. We work with more than 30 global and local databases and deliver above 95% verifications on the first try. Our automated solutions minimize human interference and guarantee the following advantages:

  • Quality. A unique compliance system and qualified legal experts allow for achieving transcendent results.
  • Security. The company’s services match the most stringent security standards, which is confirmed by ISO certificates and security audits.
  • Speed. Our solutions ensure instant verification and the highest SLA for manual checks.

KYCAID leverages AI algorithms to deliver advanced software solutions that enhance your automated verification processes. Our verification services include checking customers’ applications and addresses, corporate documents, payment methods, performing document and face verification, and proof of funds review.

The KYC verification routine performed by our software is smooth, reliable, and fast. Our specialists tailor solutions to match all customer demands ideally.

Along with the standard checking means that usually comprise ID verification and liveness check, we offer KYC/AML services for mutual fund houses with a range of additional steps:

  • Database screening and sanctions list examining;
  • Verification of address and document expiration;
  • Source of funds validation;
  • Biometric check.

Regulations in the fintech sector are adopted to ensure security and alleviate fraud. KYC and AML adherence is necessary for all organizations, including mutual funds, to guarantee legal operations and avoid non-compliance penalties. KYCAID can seamlessly integrate KYC solutions into your working process and make the procedure efficient and customer friendly.

How to do KYC for mutual fund online with KYCAID?
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