What documents you need to open a business account: KYB and source of funds explained
Expect to provide your incorporation documents, a current register of shareholders and directors, recent proof of business address, ID for everyone who owns or controls 25% or more, and evidence of where your money comes from.
By Pavel Skalin, Founder & CEO, Align · Reviewed by the Align compliance team
Updated · 4 min read
Why providers ask for all this
A regulated payments provider has to know who it's dealing with: the company, the people who own and run it, what it does, and where its money comes from. Align, for example, is registered with FINTRAC in Canada as a money services business, and Canadian law requires it to identify clients, understand their activity, monitor transactions and report certain activity to the authorities. Banks and payment firms elsewhere work under similar rules.
Know-your-business (KYB) checks are how providers meet those duties for companies. Every document on the list answers a specific question.
The checklist
| Document | What it proves | Common reason it's rejected |
|---|---|---|
| Certificate of incorporation or business registration | The company exists, and when and where it was formed | A different legal name from the application |
| Memorandum and articles of association, or equivalent | How the company is governed and who can act for it | Pages missing |
| Register of shareholders and directors | Who owns and runs the company today | Out of date, or an unofficial version without signature, date and ownership percentages |
| Company structure chart | Who sits behind any holding companies | Stops at the first layer instead of reaching the individuals at the top |
| Proof of business address | Where the company actually operates | Older than three months; vendor invoices and handwritten receipts aren't accepted |
| ID for each owner or controller of 25% or more | Who the beneficial owners are | Expired, blurry, or missing the back of an ID card |
| Proof of address for each of those owners | Where they live | Older than three months |
| Source of funds documents | Where the money you'll move comes from | Names, amounts or dates that don't match across documents |
| Tax registration or financial statements, where requested | That the business trades at the scale it claims | Figures far below the volume you plan to move |
A passport is the preferred ID for owners; other government-issued ID is usually accepted when there's no passport. If your shareholder register isn't an official extract, it should be signed, dated and show each owner's name and percentage.
Source of funds
Source of funds (SoF) answers one question: where does the money you're about to move come from? Align asks for it occasionally, for large transactions and for clients with a higher risk profile. The level of evidence depends on the country involved, how complex the source is, and the size and frequency of the payments.
| Where the money comes from | Documents that prove it |
|---|---|
| Business revenue | Invoices, signed contracts, bank statements showing customer payments |
| Investment or grants | Investment agreements, grant letters, bank receipts |
| Sale of assets | Sale agreement, title transfer, bank statements |
| Loans or credit lines | Loan agreement, proof of disbursement, lender details |
Three things make SoF reviews quicker: documents should be official PDFs or scans, the names, amounts and dates should match across them, and they should be recent, generally from the past three to six months. Media reports, news articles and social media posts aren't accepted as evidence.
Extra checks you may get
Providers adjust the depth of review to the risk. Depending on your location, the owners' nationalities, your industry and your volumes, you may be asked for audits or tax filings, enhanced due diligence, or a video call with your beneficial owners. It doesn't mean your application is in trouble.
Some accounts have their own requirements. For USD SWIFT and Fedwire accounts, Align's banking partners ask for recent financial statements, including a balance sheet, income statement and cash flow statement, and source-of-funds documents that support the volume you expect. An application can't proceed until every document is provided.
What usually slows applications down
- Old proof of address. It must be dated within the last three months.
- Screenshots and partial scans. Send the full PDF.
- An incomplete ownership chain. If a holding company owns 25% or more, the provider needs to see who owns that company, up to the individuals.
- Names that don't match. The legal name on the certificate, the application, the bank statements and the invoices should be identical.
- Unexplained volume. If you expect to move $5 million a month and your accounts show $300,000 of revenue, explain the difference up front and back it with documents: a new contract, a group treasury role, a funding round. For USD SWIFT and Fedwire accounts, figures that don't support the expected volume can lead to a rejection.
Who can't be onboarded
Every provider has a list of countries and activities it won't serve. Align doesn't onboard customers, counterparties or beneficial owners located in, incorporated in or otherwise associated with the countries on its prohibited list, including Russia, Belarus, Iran, Syria, Cuba, North Korea, Venezuela and Ukraine, and it lists prohibited activities separately. Align also doesn't directly onboard businesses based in the UAE.
How this works with Align
You create your account online in a few minutes, upload documents in 5 to 10 minutes, and our compliance team reviews them in 1 to 5 business days. Your application shows as Pending KYC Completion until documents are submitted, Pending while we review them, Resubmission Required if we need something else, and Approved once your account is active.
Sources
- Align docs, Business (KYB) verification
- Align docs, Source of funds verification
- Align docs, USD SWIFT and Fedwire onboarding
- Align docs, Prohibited countries
- Align, Acceptable Use Policy
Common questions
- How long does KYB take?
- With complete documents, Align's review takes 1 to 5 business days after you upload them. USD ACH and wire access also needs a secondary review by our US banking partner. Most delays come from missing or out-of-date documents, so check dates and pages before you submit.
- Why do you need ID for my shareholders?
- Anti-money-laundering rules require regulated providers to know the people who ultimately own or control a company, not just the company. Align asks for ID and proof of address for everyone who holds 25% or more of ownership, voting rights or control.
- Do I need audited accounts?
- Not for most accounts. Financial statements may be requested depending on your jurisdiction and risk profile. For USD SWIFT and Fedwire accounts, recent financial statements are required, and they need to support the volume you plan to move.
- Can I send screenshots of my documents?
- Send high-quality scans or the original PDFs instead, with every page and both sides of ID cards. Screenshots, partial documents and blurry images usually lead to a resubmission request.
This guide is general information, not legal, tax or financial advice. Rules and providers' terms change; check the sources linked above and take advice on your own situation.
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