Know your client is the documentation process through which the banking, financial, and real estate sectors in Costa Rica reduce uncertainty risk that the person with whom you are doing business is not engaged in illegal activities.

As this person’s attorney or real estate broker, the representative will verify a client’s activities are abiding with the laws of Costa Rica as well the formality of their fund’s origin. This typically involves significant documentation for reporting purposes in Costa Rica.

KYC (know your client) looks to guarantee that the transaction is going to be conducted abiding the appropriate regulations from both an ethical and legal standpoint.

VIDEO TRANSCRIPT: KYC Requirements in Costa Rica

What is the requirement of know your client in Costa Rica, also known as KYC?

As the name indicates, KYC is a form of validating that the person with which you are dealing is engaged in legal activities and that you are going to verify as your attorney or as his broker, that his activities are abiding with the laws of his country and your country as well. [Also,] that you’re going to verify the origin of the funds where this person comes from and that it and that the transaction is going to be conducted abiding with the regulations either in from an ethical standpoint and from a legal standpoint.

 

General content provided by Javier Sauma at SAUMA ROSSI Law Firm in Costa Rica.

 

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