KYC and extinctive management: what is changing for investors

KYC: an essential regulatory pillar

The KYC (Know Your Customer) — or customer knowledge — is a fundamental regulatory requirement in the financial sector. For crowdfunding platforms, KYC consists in verifying the identity of each user (lender as well as borrower) and in evaluating the associated risks, in particular in terms of the fight against money laundering and the financing of terrorism.

When a platform ceases its activity and an extinct management provider takes over, the question of KYC arises acutely: Are the checks already carried out still valid? Do we have to start all over again?

What happens when taken over by a service provider

Transfer of existing KYC files

The KYC files created by the original platform are part of the data transferred to the extinctive management provider. These files contain identity documents, proof of address, affidavits and the results of checks carried out.

However, transferring is not just copying files. The receiving service provider must ensure the compliance of records in terms of its own regulatory obligations and the requirements of the ACPR.

The question of the validity of verifications

In principle, the KYC verifications carried out by the original platform remain valid, under certain conditions:

• Les documents are not expired (identity document in particular)
• Les information is always up to date (address, professional situation)
• The Level of verification is in compliance to current standards
• Les data has been transferred securely and their integrity is verifiable

When a new check is needed

In some cases, the fire management provider may be required to request a KYC update. This is particularly the case when:

• The ID provided initially has expired
• Regulatory standards have evolved since the initial audit.
• The user's risk profile has changed (transaction amount, country of residence)
• The original file is incomplete or has anomalies

Chez Runoff, this update process is designed to be as least intrusive as possible for investors. A simplified verification process is offered via the dedicated online space, allowing you to update your information in a few minutes.

Protection of personal data

The transfer of KYC data between the platform and the extinctive management provider naturally raises questions relating to RGPD. Several guarantees frame this process:

• The transfer is carried out as part of a legal obligation (continuity of service imposed by the PSFP regulation)
• Data is transferred via encrypted channels and secure
• The service provider is subject to the same confidentiality obligations That the original platform
• The data is kept only for the length of time required to portfolio management
• Users have their usual GDPR rights (access, correction, portability)

A process designed for simplicity

The user experience is at the heart of the Runoff approach. Developed by Capsens, the solution integrates modern and fluid KYC processes, using remote identity verification and electronic signature when necessary. The aim is to minimize friction for investors while scrupulously complying with regulatory requirements.

KYC during extinctive management should not be an obstacle for investors. It is a supervised, simplified and secure formality, which guarantees the conformity of the entire system.