Can this agreement be signed electronically?

Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Ensure the transaction meets intent, consent, attribution, and record-retention requirements to satisfy legal validity.

Do I need a notarized signature?

Not usually. Notarization is rarely required for KYC resolution agreements, but certain states or corporate authority proofs may require notarized affidavits; verify state law or counterparty demands before insisting on notarization.

What authentication level is appropriate?

Use stronger authentication (two-factor, SMS code, or identity-proofing) for high-risk customers. Record the authentication method in the audit trail to support compliance and examiner review.

How long must I keep the executed agreement?

Retain executed KYC resolution records for the active term plus a minimum of three years; financial and healthcare records may require longer retention (see IRC §6501(a) and 45 CFR §164.530(j)).

Who should sign on behalf of a corporate customer?

An authorized officer or agent with capacity to bind the entity should sign. For proof of authority, attach a corporate resolution, articles of incorporation, or equivalent verification.

What if the customer misses the deadline?

Document the missed deadline, follow the defined escalation path, and consider account restrictions or further investigation. Escalate to SAR filing if suspicious activity thresholds are met.

Electronic Signature
Templates
Legal
KYC Resolution Agreement

KYC Resolution Agreement

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KYC RESOLUTION AGREEMENT

This KYC Resolution Agreement (the Agreement) is entered into as of by and between Company Name: , an entity organized under the laws of (Company), and Customer Name: , organized under the laws of (Customer). The Company and the Customer are each a Party and collectively the Parties.

RECITALS

WHEREAS, financial, regulatory, and internal compliance obligations require the Company to obtain, verify and maintain current know-your-customer documentation and related representations from the Customer; and

WHEREAS, the Customer has provided preliminary identity and ownership information to the Company and the Parties wish to document the Customer's certifications, the Company's verification rights, and the corporate or account-level resolution authorizing such disclosures and verifications; and

WHEREAS, the Parties desire to set forth the obligations, authorizations and indemnities concerning KYC information and related verification procedures.

NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the sufficiency of which is acknowledged, the Parties agree as follows:

1. DEFINITIONS

1.1 "KYC Documents" means the identity, address, corporate and beneficial ownership documents, certifications, and any other records reasonably requested by the Company to satisfy anti-money laundering, counter-terrorism financing, and other regulatory requirements.

1.2 "Verification" means any process by which the Company confirms the authenticity, completeness and accuracy of KYC Documents and information provided by the Customer, including third-party database checks, direct inquiries to issuers, and on-site or remote review procedures.

2. RESOLUTION AND AUTHORITY

2.1 The Customer hereby certifies that the execution, delivery and performance of this Agreement has been duly authorized by all necessary corporate or organizational action. The persons executing this Agreement on behalf of the Customer represent that they are duly authorized to bind the Customer.

2.2 Where the Customer is an entity, the Customer confirms that a resolution has been adopted authorizing the disclosure of KYC Documents and the entering into of this Agreement. If requested by the Company, the Customer shall deliver evidence of such resolution in a form reasonably satisfactory to the Company.

3. KYC DOCUMENTS AND CERTIFICATIONS

3.1 The Customer shall provide to the Company, promptly upon request, true, complete and legible copies of the following categories of KYC Documents, as applicable:

Required documents (check all that will be delivered): Passport or government-issued photo ID Driver's license or national ID Corporate formation documents and resolutions Beneficial ownership declarations and ownership structure Proof of address (utility bill, bank statement) Other supporting documentation

3.2 The Customer certifies under penalty of perjury and to the best of its knowledge that all information furnished to the Company in connection with KYC obligations is true, complete and not misleading in any material respect, and that the Customer shall promptly notify the Company of any material change to such information.

4. VERIFICATION AUTHORIZATION

4.1 The Customer expressly authorizes the Company, its affiliates and service providers to perform Verification activities, including obtaining and exchanging information with third parties, database checks, and other inquiries necessary to verify identity, ownership, creditworthiness, or compliance status.

4.2 The Customer acknowledges and consents that Verification may involve the processing of personal data and that such processing is necessary for compliance with applicable law and regulatory obligations.

5. REPRESENTATIONS AND WARRANTIES

5.1 Each Party represents and warrants that it has full power and authority to enter into and perform this Agreement and that the execution and performance will not violate any applicable law, contract or obligation.

5.2 The Customer further represents that it is not subject to sanctions or law enforcement restrictions that would prohibit the Company from maintaining or processing the Customer's account or information.

6. CONFIDENTIALITY AND DATA HANDLING

6.1 The Company shall maintain KYC Documents and information in confidence and shall not disclose such information except (a) as required by law, regulation or court order, (b) to service providers engaged to perform Verification on behalf of the Company, or (c) with the Customer's express written consent.

6.2 The Company will implement commercially reasonable administrative, technical and physical safeguards to protect KYC information against unauthorized access and disclosure.

7. INDEMNITY; LIMITATION OF LIABILITY

7.1 The Customer shall indemnify, defend and hold harmless the Company, its affiliates, officers and employees from and against any losses, damages, liabilities, costs and expenses (including reasonable attorneys' fees) arising from any misrepresentation, omission, or breach of this Agreement by the Customer or from inaccurate KYC information provided by the Customer.

7.2 Except for liability arising from willful misconduct or gross negligence, neither Party shall be liable to the other for incidental, special, consequential or punitive damages.

8. NOTICES

Company notices address: Customer notices address:

8.1 Notices shall be in writing and delivered by hand, nationally recognized overnight courier, or certified mail (return receipt requested) to the addresses provided above and shall be effective upon receipt.

9. AMENDMENT; WAIVER; COUNTERPARTS

9.1 No amendment to this Agreement will be effective unless in writing and signed by both Parties. No waiver by either Party of any breach shall constitute a waiver of any subsequent breach.

9.2 This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures transmitted by electronic means shall be binding.

10. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

10.1 This Agreement shall be governed by and construed in accordance with the laws of without regard to conflicts of law principles.

10.2 This Agreement constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, understandings and communications, written or oral.

10.3 If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it enforceable, or if modification is not possible, the provision shall be severed and the remaining provisions shall remain in full force and effect.

11. MISCELLANEOUS

11.1 Each Party agrees to cooperate in good faith to provide any additional documentation or consents reasonably required to effectuate the purpose of this Agreement.

Additional remarks or special instructions:

Company

Printed Name:

By:

Date:

Customer

Printed Name:

By:

Date:

What the KYC Resolution Agreement Is

A KYC Resolution Agreement documents the resolution of Know Your Customer (KYC) issues between a financial institution, onboarding team, or compliance officer and a customer or counterparty. It records factual findings, corrective actions, agreed timelines, data corrections, and any outstanding documentation the customer must provide. The agreement helps create an auditable paper trail for regulatory review, supports suspicious activity reporting where required, and clarifies responsibilities for both parties during remediation of identity, beneficial ownership, or documentation gaps.

Why a Formal KYC Resolution Agreement Matters

A written agreement reduces regulatory risk by documenting remediation steps, timestamps, and responsible parties. It creates evidence for examiners and internal audit and reduces rework by centralizing requirements and deadlines into a single, traceable record.

Who Typically Prepares and Signs This Agreement

Assigning clear ownership and involving the right signatories reduces ambiguity and helps meet internal SLAs and regulator expectations.

Bank compliance officers and AML analysts who coordinate documentation collection and remediation.
Account managers or commercial bankers who manage ongoing customer relationships and risk exceptions.
External counsel or corporate authorized signatories who accept resolution terms on behalf of the customer.

Core Elements to Include in a Professional Agreement

A complete KYC Resolution Agreement combines a factual record with clear remediation tasks, deadlines, signer identification, and evidence attachments to ensure enforceability and regulatory transparency.

Issue Summary

Concise statement of the KYC issue (missing ID, beneficial ownership discrepancy, outdated documentation) and the date it was identified.

Corrective Actions

Specific steps the customer must take (submit ID, complete beneficial owner form, update address), responsible party, and required evidence format.

Deadlines

Clear completion dates for each action; include time zones and business-day calculation method to avoid ambiguity.

Consequences

State potential account restrictions, escalation to SAR/CTR filing, or service suspension if requirements are not met by deadlines.

Evidence

Attach scanned IDs, certified documents, or RON-notarized affidavits; list acceptable document types and verification methods.

Signatures

Identify authorized signers, include titles and contact info, and require dated signatures with an audit trail for electronic execution.

Step-by-Step: Completing a KYC Resolution Agreement

Follow a clear sequence to gather facts, assign tasks, and execute the agreement so the remediation is auditable and enforceable.

01

Collect Evidence: Gather IDs, corporate documents, and correspondence supporting the issue and proposed resolution.
02

Draft Terms: Record required actions, deadlines, and consequences in precise language.
03

Review Internally: Have compliance and legal confirm obligations and acceptable evidence.
04

Execute and Archive: Obtain authorized signatures and store the executed agreement with the case file.

How to Configure an Online KYC Resolution Workflow

Set up templates, signer roles, and conditional fields to reduce manual steps and ensure consistent execution across cases.

Template	Create a reusable KYC resolution template with placeholders for names, dates, and attachments.
Signer Roles	Define roles (Customer Signer, Compliance Approver, Legal Reviewer) and enforce role order.
Conditional Fields	Use conditional fields to show required documents only when specific exceptions are selected.
Authentication	Require two-factor or email + SMS verification for high-risk cases.
Audit Settings	Enable full audit trails, timestamps, and IP logging for each signing event.

Where and How Signed Agreements Are Submitted

Define the routing path and final storage location before sending so all parties know where to return evidence and completed agreements.

Send to Customer: Deliver the agreement via secure link or email to the authorized signatory.
Internal Approval: Route executed copies to Compliance and Legal for verification and acceptance.
Attach to Case File: Archive the signed agreement with the KYC case record in the document management system.
Regulatory Holding: Retain a copy in regulatory retention folders to support audit and exam readiness.

Digital Signing and Distribution Considerations

Ensure the chosen platform supports exportable audit trails, optional notarization paths, and the ability to attach verification evidence to the signed agreement.

Authentication: Email + access code or two-factor
Document Formats: PDF and DOCX supported
Integrations: CRM and DMS connections

Typical Timelines and Processing Expectations

While specific timelines depend on internal SLAs and risk level, set measurable deadlines to reduce escalation and regulatory attention.

Initial Customer Response:

10–15 business days is a common internal target for first response.

Document Verification:

Verification and validation typically complete within 5–10 business days after receipt.

Escalation to SAR/CTR:

Escalate immediately if suspicious activity criteria are met; file SARs per FinCEN guidance.

Final Resolution:

Aim to resolve low-risk items within 30 days; complex ownership issues may require 60–90 days.

Regulatory Reporting Window:

Follow regulatory timelines for CTR or SAR filing; timing is event-driven rather than document-driven.

Common Mistakes That Delay KYC Resolution

Accepting unofficial or poor-quality scans that fail identity verification checks and require re-submission, adding days to the timeline.
Using vague deadlines or unspecified time zones, which creates disputes about whether remediation occurred on time.
Not verifying the signer’s authority for corporate customers, which can invalidate the agreement and require board or corporate resolution.
Failing to attach or link supporting evidence (IDs, formation documents), causing manual follow-up and potential regulatory questions.

Risks and Potential Consequences of Inadequate Resolution

Regulatory Fines: Monetary penalties and enforcement actions

Operational Risk: Account restrictions or business disruption

SAR Obligation: Mandatory suspicious activity reporting may be required

Reputational Harm: Negative examiner findings publicized

Customer Attrition: Service suspension can drive customers away

Legal Exposure: Civil claims for mishandled documentation

Comparing eSignature Pricing and Key Limits

Price and feature choices affect cost per signing workflow. Compare starting price, trial availability, bulk send, audit trail, HIPAA support, and envelope caps when selecting a platform.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About KYC Resolution Agreements

Answers to common questions about execution, legal validity, recordkeeping, and electronic options for KYC remediation.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Ensure the transaction meets intent, consent, attribution, and record-retention requirements to satisfy legal validity.
Do I need a notarized signature?
Not usually. Notarization is rarely required for KYC resolution agreements, but certain states or corporate authority proofs may require notarized affidavits; verify state law or counterparty demands before insisting on notarization.
What authentication level is appropriate?
Use stronger authentication (two-factor, SMS code, or identity-proofing) for high-risk customers. Record the authentication method in the audit trail to support compliance and examiner review.
How long must I keep the executed agreement?
Retain executed KYC resolution records for the active term plus a minimum of three years; financial and healthcare records may require longer retention (see IRC §6501(a) and 45 CFR §164.530(j)).
Who should sign on behalf of a corporate customer?
An authorized officer or agent with capacity to bind the entity should sign. For proof of authority, attach a corporate resolution, articles of incorporation, or equivalent verification.
What if the customer misses the deadline?
Document the missed deadline, follow the defined escalation path, and consider account restrictions or further investigation. Escalate to SAR filing if suspicious activity thresholds are met.

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