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Only a business must do KYC. KYC is regulated by FinCEN. FinCEN requires every “Money Services Business” to register with them and do KYC. If maintaining a su
by toomim 9y ago
Only a business must do KYC.
KYC is regulated by FinCEN. FinCEN requires every “Money Services Business” to register with them and do KYC.
If maintaining a supernode is so costly that only businesses will do so, to make a profit, then supernodes might require KYC. If supernodes run non-profit, they don’t need to.
- AlexCoventry 9y ago> Only a business must do KYC. If you're skirting KYC requirements on the basis of this belief, you should seek legal counsel.
- AdamSC1 9y agoA non-profit is legal considered to be a type of business that simply gets a different tax treatment. A business is considered to be a type of entity (just like a person) that gets different tax treatment. Anyone who transfers money, by any manner including, but not limited to, electronic, financial, debt ledger, cash or traditional methods like hawala, hundi, fei ch'ien, and chit is considered to be a "Money Transmitter." Money Transmission classification and registration varies by state, to receive money from, or transfer money to someone in said state (regardless of your jurisdiction) you must register with the state and usually put up an insurance bond. Then you must also register with FinCEN and enact an appropriate AML policy that would include KYC.
- k_sh 9y agoA non-profit is still legally structured as a business entity (be it a corporation, LLC, whatever). Non-profit status is given by the IRS, allowing the entity to avoid taxes. It doesn't change the underlying entity's structure. NB: I'm not a lawyer.