Know Your Customers (KYC) Regulations
In 2019 we launched the very successful Smart Setup. In 2020, we improved upon the process and up-leveled our KYC requirements making Snap! Raise the safest and more secure fundraising option available to group activities.
Our Highest Priority: Data security and information protection
In 2019, we successfully launched Smart Setup. In 2020, we bolstered our KYC requirements to comply with federal guidelines and regulations to ensure that Snap! Raise became the safest and most secure fundraising option available. This is why before any campaign begins, we require KYC to guarantee financial transparency and security. So what does that all mean exactly?
KYC, the CDD Rule, and You
Let’s start with KYC or Know Your Customer. KYC is a federally mandated regulation under the Customer Due Diligence Rule (CDD) and Customer Identification Program (CIP) that requires all U.S. banks to gather information to verify that you—the group leader or coach—are authorized to fundraise for your affiliated organization. This identity confirmation is necessary to prevent fraudulent fundraising. By following KYC, U.S. banks can safely create a secure, temporary bank account (also known as a Merchant Account) so that you or your organization can clearly and easily track, monitor, and control your donations straight from the source.
That was a lot of information. Let’s break it down.
Requiring KYC allows both the government and Snap! Raise to guarantee financial transparency and security once we are able to confirm that you are authorized to fundraise on behalf of your organization. This means:
Interested in the full legal details? Read more from Harvard Law School.
Want more info, but with less legalese? Read more from Wikipedia.org.
We can’t wait to get you fundraising faster and more powerfully than ever.