Definition
Know Your Customer (KYC)
Identity verification required for every LP before they can fund an SPV.
Know Your Customer (KYC) is the process of verifying the identity of every limited partner in an SPV. KYC is required under US Bank Secrecy Act and FinCEN regulations and includes collecting government ID, address proof, and tax forms (W-9 for US persons, W-8BEN for non-US individuals, W-8BEN-E for non-US entities). Modern SPV platforms run KYC electronically through identity verification providers, typically completing the check in minutes for low-risk investors and escalating to enhanced due diligence for politically exposed persons or high-risk jurisdictions.