Anti-Money Laundering (AML) regulations where the Know Your Customer (KYC) controls are a major part of the process.
Regroups all the practices, tools and methodes of financial transactions that involves a large number of people, called the “crowd” to finance a project or venture.
There are essentially three types of Crowdfunding: Crowdsupporting, Crowdlending and Crowdinvesting.
Where crowdfunding is done in the shape of a donation (without anything in exchange) or in exchange of a reward (pre-order, advantage in nature…)
Where crowdfunding is done to lend to individuals and businesses. It allows people or companies to borrow funds from several individuals in exchange of interests.
Crowdinvesting or equity crowdfunding
Where crowdfunding is used to invest in the capital of a company, in our case to be more precise, equity crowdfunding, which is the collective effort of individuals to support efforts initiated by other people or organizations through the provision of finance in the form of equity.
A share of the capital held in a corporation.
Know Your Customer (KYC) is the process of a business identifying and verifying the identity of its clients. It refers to Anti-Money Laundering (AML) regulations.
Politically Exposed Person
Represents the equity of a company as divided among shareholders.
In accounting terms: Equity = Assets – Liabilities