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KYB/KYC

FAQs around the verification process

Karthi Sundaram avatar
Written by Karthi Sundaram
Updated over 2 months ago

Q: Who can open an account with Finofo?

  • At Finofo, we've designed our account opening process for convenience and efficiency. Any team member of a company can start the process by handling the initial data entry. However, to complete and finalize the account setup, the individual must be either a director of the company or a majority shareholder owning 25% or more. This ensures that those with significant decision-making power and ownership are involved in the crucial stages of account establishment.

  • To facilitate a seamless experience, authorized individuals will receive step-by-step guidance via email, detailing the necessary actions to complete the process entirely online. Our approach is tailored to provide a smooth and secure journey for all parties involved, aligning with our commitment to user-friendly, compliant financial solutions.

Q: What are the steps involved in the KYC/KYB process with Finofo?

The KYC (Know Your Customer)/KYB (Know Your Business) process at Finofo is divided into four straightforward categories:

  • Simple Contact and Personal Details: This initial step involves providing basic personal and contact information to establish a clear point of contact.

  • Business Details: The second step dives into the specifics of your business, such as the nature of operations and other relevant aspects, to understand the context of your business activities.

  • Leadership Details: This part concentrates on acquiring information about the company's key leadership, particularly those who are authorized signatories, such as directors and primary decision-makers.

  • Ownership Structure: Here, the emphasis is on the company's ownership structure, particularly identifying major stakeholders holding at least a 25% stake in the company.

The ID verification process with Finofo is designed to be simple and can be completed entirely online, including using your phone. Here are the steps:

  • Access Verification Section: Log into your Finofo account and go to the ID verification section, which you can do directly from your phone.

  • Upload ID Documents: Use your phone's camera to capture and upload a clear photo of your identification document, such as a passport or driver's license.

  • Verification via Plaid: The verification process is powered by Plaid, ensuring a secure and rapid verification. Follow the prompts on your screen to submit your ID.


Q: Why is the KYC/KYB process important?

The KYC/KYB process is crucial for several reasons:

  • Regulatory Compliance: As a FINTRAC-regulated entity, Finofo must comply with strict legal standards. The KYC/KYB process is a critical component of this compliance, ensuring that our services are not misused by bad actors. This adherence to regulations guarantees that our clients can confidently and securely access financial services.

  • Security: The detailed information gathered ensures the safety and security of your company's data and funds. It's a precautionary measure to prevent fraudulent activities and to safeguard your financial transactions.

  • Operational Integrity: By understanding your business and its leadership, Finofo can provide tailored services and support, ensuring a smoother operational flow.

Q: How does Finofo ensure the ease of this process?

Finofo has designed the KYC/KYB process to be as user-friendly and straightforward as possible. The clear categorization of information, combined with an intuitive online interface, allows for a seamless experience.

Q: Why does Finofo require extensive information for the KYC/KYB process?

  • At Finofo, we're not just offering financial services; we're redefining them. Imagine accessing a suite of financial solutions far superior to traditional banking, but with the added convenience of the digital age. That's Finofo for you.

  • While we adhere to the rigorous standards set by FINTRAC, requiring comprehensive information for our KYC/KYB processes, we've revolutionized how it's done. Gone are the days of branch visits, cumbersome paper or pdf forms, manual signatures, and the back-and-forth of ID verification in person.

  • We've brought the entire process online, tailored for your convenience. With Finofo, you can complete these essential steps from wherever you are, using any device. This streamlined, digital-first approach not only saves you time but also ensures a smoother, more efficient onboarding experience.

  • So, while we gather the necessary information to maintain the highest levels of security and compliance, we do it in a way that respects your time and modern lifestyle. With Finofo, you're stepping into the future of financial services – more secure, more efficient, and entirely online.

Q: What is the difference between a CRA Business Number and a Corporate Number/Registry ID?

The CRA Business Number is a unique identifier provided by the Canada Revenue Agency for tax purposes. On the other hand, a Corporate Number or Registry ID is issued by provincial or territorial registrars, primarily for identifying a corporation in its jurisdiction for legal and administrative functions.

Q: Why does Finofo require my Articles of Incorporation?

The collection of your Articles of Incorporation is a requirement under FINTRAC regulations. This document serves to verify the existence of your corporation and acts as a foundational document. It also provides detailed information about the board of directors, which is essential for compliance and due diligence purposes.

Q: How long does it take to complete the KYC process with Finofo?

At Finofo, we understand the importance of time in business operations. Once you complete your part of the Know Your Customer (KYC) process, our team promptly takes over. In most cases, no additional information is required, and we are able to activate your account within just one business day.

However, to adhere to FINTRAC regulations and ensure the utmost security and compliance, there may be instances where we request further details from you. Our commitment is to maintain an efficient and streamlined verification process, enabling a quick and hassle-free setup of your account. Rest assured, our team works diligently to minimize any delays, ensuring you can start utilizing our services as soon as possible.


Q: Is it possible to expedite the account opening process with Finofo?

To speed up the account opening process, it's crucial to complete all the required information accurately and diligently. Additionally, reminding important stakeholders involved in the verification process can help expedite it. Stakeholders will receive timely emails from Finofo prompting them to complete their part of the process, and acting promptly on these emails can significantly reduce the overall time taken.

Q: How is my ID verified, and what is PLAID? How safe is it?

Your ID is verified using Plaid, a secure identity verification platform. This process involves uploading a live photo along with your identification document. Plaid ensures that the person opening the account is the same as the one on the identification document. It is a highly secure method, utilizing advanced technology to protect your personal information and prevent identity fraud. This approach offers a robust layer of security, guaranteeing the safety and integrity of the verification process.

Q: Is it possible to skip the KYC verification process with Finofo?

Unfortunately, skipping the KYC or KYB verification process is not an option with Finofo. As a FINTRAC regulated company, Finofo must adhere to these processes to ensure compliance with regulatory standards. This procedure is not only mandatory but also recommended for maintaining a safe and secure financial environment.


Q: Do finance managers handling invoice payments need to submit ownership details for KYC/KYB compliance?

Yes, finance managers are required to provide ownership details as part of our KYC/KYB compliance process. At Finofo, we adhere to FINTRAC regulations, requiring comprehensive ownership information from all entities transacting on our platform. This is crucial for preventing money laundering and terrorist financing. Our process is designed to be flexible and efficient: anyone from your company can initiate the submission of this information online. However, the process must be completed and verified by an authorized individual, typically a board member or someone with a majority ownership stake. This ensures both regulatory compliance and security in handling sensitive information.

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