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KYC Guidelines for Participation in Private Placement Programs (PPP)
Introduction
The completion of Know Your Customer (KYC) documentation is a fundamental requirement for engaging in Private Placement Programs (PPP). This process ensures adherence to regulatory standards and minimizes risks associated with financial transactions. The following guidelines outline the proper preparation of KYC documentation to facilitate a seamless approval process.
- Document Clarity and Compliance
- Utilize a high-resolution scanner to ensure each document page remains clear and legible.
- To maintain document integrity, avoid modifications and ensure that JPEG images are properly embedded within the KYC Word file.
- Accuracy and Completeness
- All sections of the KYC documentation must be fully completed. If a field is not applicable, indicate this by marking it as “N/A” rather than leaving it blank.
- Required Documentation
- A passport and a utility bill (gas, electricity, or local government tax) must be submitted in high resolution, preferably captured using a high-quality smartphone camera.
- Financial statements, tear sheets, and supporting proofs must be issued within the last 48 hours and must remain unaltered.
- The designated accounts for Bullet Trade proceeds and 40-week Trade proceeds must remain consistent throughout the documentation.
- Address Verification
- As proof of residence, a utility bill not older than three months must be provided. Mobile phone bills will not be accepted.
- Legal Translation and Attorney Verification
- If translation is required, a qualified attorney must be engaged for this purpose. A JPEG image of the attorney’s passport should be embedded within the KYC file.
- The attorney must be affiliated with a law firm that has been operational for a minimum of five years.
- Contact Information
- The KYC documentation must include valid contact details for the primary investor and the translator, including email, phone number, and Skype ID. Contact details of brokers or banking advisors will not be accepted.
- Signature Requirements
- All required signatures must be executed using wet blue ink; electronic or digital signatures are strictly prohibited.
- The completed KYC form must be printed, hand-signed, and initialed where necessary using blue ink before being scanned as a PDF.
- Banker Business Cards
- At least one, but preferably two, banker business cards should be submitted as part of the documentation.
- Source of Funds Declaration
- The “Origin of Funds” section must be completed in detail, particularly for substantial capital amounts, with a thorough explanation of the source.
- Investor Transaction Code
- A unique transaction code must be generated using the following format: (Investor’s initials) — (Seller Representative’s initials) — (Currency & Amount) — (Bank Initials) — (Completion Date) Example: JD-FS-EUR10M-HSBC-2019.01.15
- Proof of Life (PoL) Video
- A compressed Proof of Life (PoL) video must accompany the application, showing the applicant physically signing the KYC documents in blue ink. The video must also display the applicant’s passport and a newspaper from the same day. This PoL must be recorded no more than two banking days before submission.
Key Financial Documentation and Compliance Standards
- Proof of Funds (POF)
- A tear sheet dated within the last 48 hours must be provided to demonstrate the availability of funds.
- Bank Capability Letter (BCL)
- A formal letter issued by the applicant’s bank, signed by two authorized bank officers, confirming the applicant’s financial capability. Business cards of the signing officers must be included.
- Ready, Willing, and Able (RWA) Declaration
- A signed statement by the investor affirming their readiness, willingness, and ability to engage in the proposed financial transaction.
- MT799 RWA Confirmation
- An official SWIFT message (MT799) confirming the applicant’s financial readiness and credibility.
By strictly following these procedural guidelines and ensuring the accuracy and completeness of all submissions, applicants can accelerate the KYC approval process and strengthen their eligibility for Private Placement Programs. Compliance with these standards is critical in maintaining financial integrity and transaction security.