KYC/AML

Definition

Know Your Customer (KYC) and Anti-Money Laundering (AML) processes verify investor identity, ownership, and source-of-funds risk. These checks are performed by the fund, administrator, or compliance provider and are required to meet regulatory and banking standards. KYC/AML is operational, but it has real fundraising impact because it can delay closings. Allocator Context Institutions expect professional KYC/AML workflows, including documented procedures, secure data handling, and clear responsibilities between GP and administrator. Complex LP structures (fund-of-funds, offshore entities, trusts) require more documentation and time. Decision Authority KYC/AML completion is often a hard gate to acceptance. Even after IC approval, an LP may not be admitted until compliance clears. Why It Matters for Fundraising Managers who plan for KYC/AML early—clear checklists, secure portals, and responsive admin support—avoid last-minute closing failures. Key Takeaways A compliance gate, not optional Can delay closes even after approvals Process discipline improves investor experience Clear responsibilities reduce friction