KYB Requirements and Process

Before you can begin transacting with YellowCard, all partners are required to complete a

Customer Due Diligence (CDD) review. This process is a legal requirement that applies to all financial institutions, and the forms are part of YellowCard's anti-money laundering (AML), counter-terrorism financing, and proliferation finance compliance program.

This article explains what the process involves, what documents are required, and what to expect at each stage.

Why This Process is Required

Customer Due Diligence is required by law before any trading relationship can be established. The process allows YellowCard to:

• Verify the identity of corporate customers, including their structure and ownership.
• Understand the nature and purpose of each business relationship.
• Identify and screen Ultimate Beneficial Owners (UBOs), the individuals who ultimately own or control your business.
• Ensure all transactions align with legitimate commercial activity.

Before the Process Begins

To begin the due diligence process, you will first be asked to electronically sign YellowCard's terms and conditions, including a Mutual Confidentiality and Non-Disclosure Agreement (NDA). This agreement protects both parties during the review process and throughout the business relationship.

Once signed, YellowCard's Client Risk and Due Diligence (CRDD) team will be authorized to commence the review. You will receive an introductory email from AiPrise, YellowCard's secure due diligence platform, with a link to the verification page to submit all required documents.

Required Documents

The following documents are typically required. Please note this list is not exhaustive.

Additional information may be requested depending on your specific case:

• Certificate of Incorporation and constitutional documents
• Register of Directors and beneficial owners
• Valid identification for directors and Ultimate Beneficial Owners (UBOs)
• Proof of registered address and operational address
• Relevant regulatory licenses or authorisations, where applicable

The Due Diligence Process

The process follows six stages from initial identification through to ongoing monitoring.

Step 1: Identification and Notification

Your YellowCard sales representative assesses your trading needs and identifies any third-party entities involved in your transactions. You will be informed that due diligence is mandatory and that trading cannot begin until the process is complete.

Step 2: Submission and Pre-Review

Your sales representative helps facilitate the collection of required documentation. The CRDD team verifies that the submission is complete and will request any missing information if necessary. Once complete, your entity is logged for formal review.

We aim to provide an initial assessment or request for further information within 48 to 72 business hours of receiving a complete submission.

Step 3: Due Diligence Review

The CRDD team conducts a full documentation review, including AML screening on your entity and relevant individuals. In some cases, enhanced due diligence may be required for higher-risk profiles. The team then determines suitability for approval.

Step 4: Approval and Account Setup

If approved, your account is set up, and internal systems are updated. If your application is not approved, trading cannot proceed unless new credible information is provided to support a reassessment.

Step 5: Communication of Outcome

You will be notified of the outcome by your YellowCard sales representative. Once approved, your account will be ready to begin trading.

Step 6: Ongoing Monitoring and Compliance

YellowCard is required to carry out ongoing monitoring of business relationships as part of its compliance obligations. This may include periodic reviews or requests for updated documentation during the course of your relationship with YellowCard.

Timelines

YellowCard aims to complete the initial document review within 5 business days after receipt of all required documentation. Any follow-up reviews are typically processed within 2 business days. Timelines may vary depending on the complexity of the case and the speed at which documentation is provided.

A Note on Third-Party Due Diligence

Third-party due diligence is separate from the standard customer due diligence process. If your business instructs YellowCard to transact with a third party on your behalf, additional due diligence on that third party will be required before those transactions can proceed.

This is a requirement under AML laws and the regulatory conditions that apply to YellowCard. Your sales representative will assist you in managing these requirements to avoid any interruptions to your trading activity. Please ensure third parties are submitted for review as early as possible.

Support

YellowCard's due diligence team is available to guide you through every step of the process. Where necessary, a dedicated analyst will be assigned to your case. If you have any questions at any stage, contact your YellowCard representative or reach out to the support team.