This article is designed to help Neobanks and Fintech companies understand the notarizations required for onboarding as part of Anti-Money Laundering (AML) and Know Your Business (KYB) compliance. Proper notarization is crucial to verify the identity and legitimacy of businesses and their representatives, ensuring compliance with regulatory standards and safeguarding against financial crimes. To learn more about the AML/KYB compliance, please refer to this article, here.

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1. Proof of Identity

Key Documents:

• Passport: A notarized copy of the passport for key individuals such as directors, beneficial owners, and senior management.
• Driver’s License or National ID: Notarized copies of other government-issued identification documents.

Why It's Needed: Notarized identification documents confirm the identity of individuals associated with the business, preventing identity theft and fraud.

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2. Proof of Address

Key Documents:

• Utility Bills: Notarized copies of recent utility bills (electricity, water, gas) showing the individual’s name and residential address.
• Bank Statements: Notarized bank statements or other financial documents with the current address.

Why It's Needed: These documents verify the residential address of the individuals, ensuring they can be located if needed for legal or regulatory reasons.

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3. Corporate Documents

Key Documents:

• Certificate of Incorporation: A notarized copy to confirm the business’s legal status.
• Articles of Association: Notarized copy of the articles of association or other founding documents.
• Operating Agreement: For LLCs, a notarized copy of the operating agreement.

Why It's Needed: Notarized corporate documents verify the legitimacy and structure of the business entity.

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4. Ownership and Structure

Key Documents:

• Shareholder Register: Notarized copies to verify the ownership structure.
• Beneficial Ownership Declaration: Notarized declaration identifying individuals who ultimately own or control the entity.

Why It's Needed: These documents ensure transparency about who owns and controls the business, crucial for AML compliance.

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5. Financial Statements

Key Documents:

• Audited Financial Statements: Notarized copies of recent audited financial statements.
• Bank References: Notarized letters of reference from banks where the business holds accounts.

Why It's Needed: These notarized documents demonstrate the financial health and reliability of the business.

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6. Legal and Compliance

Key Documents:

• AML/KYC Policy Documents: Notarized copies of the entity’s internal AML/KYC policies and procedures.
• Licenses and Permits: Notarized copies of relevant business licenses or regulatory permits.

Why It’s Needed: These documents confirm the business’s commitment to compliance and legal operations.

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7. Contracts and Agreements

Key Documents:

• Service Agreements: Notarized copies of key service agreements or contracts.
• Leases and Property Agreements: Notarized copies of lease agreements for business premises, if applicable.

Why It’s Needed: Notarized contracts and agreements verify the business’s operational commitments and legal obligations.

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Importance of Notarizations

• Verification of Authenticity: Ensures documents are genuine and properly executed.
• Deterrence of Fraud: Reduces risk of identity theft and fraudulent activities.
• Legal Compliance: Adheres to AML/KYB regulatory requirements.
• Trust and Reliability: Enhances credibility and trustworthiness with regulators and financial institutions.

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Challenges and Considerations

• International Variability: Notarization standards vary by jurisdiction, complicating global operations.
• Digital Notarization: Some regions allow electronic notarizations, which can streamline the process but require secure platforms.
• Regulatory Changes: AML/KYB regulations evolve, necessitating continuous updates to compliance practices.

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For neobanks and fintechs, proper notarizations are a critical part of AML/KYB compliance during onboarding. Ensuring the authenticity of identity, address, corporate, financial, legal, and operational documents helps establish business legitimacy and regulatory adherence. Stay informed about notarization requirements and regulatory updates to maintain compliance and foster trust within the financial ecosystem.

For more information or assistance with notarizations, feel free to contact our support team at Legitify. We are here to help you navigate the complexities of AML/KYB compliance with ease and confidence.