When the buyer, seller or a payee is a company, verification goes beyond one person's ID. The paymaster needs to confirm that the company exists, is in good standing, is owned and controlled by the people named, and that the person signing has authority. This is often called Know Your Business or KYB.
The checklist
- Formation documents: certificate or articles of incorporation or organization, and any amendment or name change.
- Certificate of good standing: issued by the state or country of formation, usually within the last 90 days.
- Ownership records: operating agreement, bylaws, shareholder or member register, showing every person who owns 25% or more, directly or through other companies.
- Control person: the person who manages the company, such as the CEO, managing member or general partner.
- Authority to sign: a board or members resolution, or a power of attorney, authorizing the signer for this transaction.
- Bank statements: recent statements for the account that will send or receive funds, in the company's name.
- Licenses: any business, trade, import or export license, or regulator's license if the company is regulated.
- IRS form: Form W-9 for a U.S. company or W-8BEN-E for a foreign company. See W-9 or W-8BEN?
- Owner and signer ID: each beneficial owner and the signer provide their own identification and complete the individual client information form.
Why so much?
Shell companies are a common tool in commodity fraud and money laundering. Confirming real ownership and authority protects honest parties, keeps the trust account clean, and lets the bank process payments without delay. Every name is also screened against sanctions lists.
How to send them
Clients of the firm download the Know Your Business form, print it, sign it, scan it and upload it with the supporting documents in the secure client portal, on the Forms and Verification page. Each item shows as received once uploaded. Please do not send identity or bank documents by ordinary email.
Translations and certifications
Documents not in English should come with an English translation. For some jurisdictions, the attorney may ask for certified or apostilled copies.
Timing
Funds cannot be accepted until verification is complete and reviewed, so it pays to start early. See also documents you need before a paymaster can receive funds, and our attorney paymaster services.