KYC and AML explained: what a money app must check before serving customers
By SendPay Business · · 2 min read
Before a money app lets someone hold a balance, send money or get a card, it has to know who they are. That's KYC, know your customer, and it's one part of the wider anti-money laundering (AML) rules every payments business follows. Here's what it means in practice.
What KYC is
Checking that each customer is a real person and who they say they are, usually with a photo of an identity document and a selfie matched against it. For business customers, it also means checking the company and the people who own and run it.
What AML adds
AML goes beyond sign-up: watching for unusual payments, screening customers against sanctions lists, and reporting suspicious activity. In the UK, the Money Laundering Regulations 2017 set these duties.
What a good check feels like
Done well, it takes a couple of minutes and builds trust rather than putting people off.
- The customer photographs their passport or driving licence.
- They take a short selfie, which is matched to the document photo.
- Most checks come back in minutes; a few need a person to look.
How it works on SendPay Business
Every platform includes customer identity verification, with document and selfie checks wired into sign-up, so each customer is verified before they can hold a balance or be given a card. It's included and can't be removed, because the rules and the card partner require it.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What do identity checks cost per customer?
Work out the cost per verified customer after drop-offs and manual reviews, from your own numbers.
KYC cost calculator →Do I have to run KYC on every customer?
Before they can hold money or get a card, yes. The exact thresholds depend on your country and what your app does.
Which registrations do I need?
The registration guide covers FCA and HMRC registration and when each applies.
FCA and HMRC registration guide →How is customer money protected?
The e-money guide explains how safeguarding works and how it differs from a bank.
E-money institution vs bank →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.