Legal and compliance
KYC and AML
Also known as Know your customer, anti-money laundering
The identity and source-of-funds checks a fund runs on every investor.
Administrators collect identity documents, ownership details and information on where the money comes from, and screen against sanctions lists. Institutions will also review the fund's own controls.
Why it matters when you raise
Slow investor paperwork delays closings, so send checklists early.