What Does KYC Mean?

KYC is the process of identifying and verifying the identity of customers. It helps prevent financial crimes such as money laundering, tax evasion, and terrorist financing. The process involves collecting and assessing relevant information about a customer’s identity, business activities, and risk profile.

Why is KYC Required for Accounting and Corporate Services?

Under the Norwegian Anti-Money Laundering Act (hvitvaskingsloven), both accountants and providers of corporate services (including address services) are considered obligated entities. This means they are legally required to conduct customer due diligence (CDD) and report suspicious activities to Økokrim through the Norwegian Financial Intelligence Unit (FIU).

These providers must:

• Collect valid identification from customers (e.g., passport or national ID)
• Verify that the information is accurate
• Understand ownership and control structures, particularly for corporate clients
• Clarify the purpose of the business relationship
• Assess the risk of money laundering or other illicit activity

Who Does This Apply To?

KYC obligations apply to both new and existing clients. The information may need to be updated regularly, especially when there are changes in ownership, management, or the customer’s country of affiliation.

What Does This Mean for You as a Customer?

You may be asked to provide:

• Valid identification documents
• Company registration documents
• Information about beneficial owners (i.e., who ultimately owns or controls the business)
• Details about the services you need and how you intend to use them

While this may seem like a formality, it is a crucial step in ensuring that services are not misused for illegal purposes. It also provides security and peace of mind, knowing the service provider complies with the law.

In Summary

KYC is a vital part of conducting business responsibly and lawfully. For providers of accounting and corporate services, it is not just good practice—it is a legal obligation under Norwegian law. By cooperating and providing the necessary information, you as a client help contribute to a safer and more transparent business environment.