KYC laws were introduced in 2001 as part of the Patriot Act, which was passed after 9/11 to provide a variety of means to deter terrorist behavior. They added on to rules to defeat bank fraud and suspicious activity.
The section of the Act that pertained specifically to financial transactions added requirements and enforcement policies to the Bank Secrecy Act of 1970 that had thus far regulated banks and other institutions.
Thus, Title III of the Patriot Act requires that financial institutions deliver on two requirements to comply with the stricter KYC: the Customer Identification Program (CIP), related to identity of yourself or organization opening an account, and Customer Due Diligence (CDD), which is related to activity inside your account or how you fund it.
When working with our bank partners, we must work together to help them complete the KYC process with our customers. Our bank partner may ask you for additional information than what you provided in onboarding.
If you fail multiple parts of the KYC process, a quick video conference with our bank partner will be the fastest way through the process.
No. While we understand some processes of KYC can be frustrating or feel intrusive, it's a necessary part of financial regulation today. Almost every financial institution has a rigorous KYC process that may or may not be visible to satisfy compliance requirements from the federal government.
It is essential to have a bank account as part of the checkbook control process, and Rocket Dollar must work closely with our partners to defeat fraud or suspicious activity