StegX operates under German jurisdiction and must adhere to the strict regulatory standards set by the Federal Financial Supervisory Authority, commonly known as BaFin. This compliance requires that natural persons complete a KYC (Know Your Customer) verification, while legal entities must undergo a KYB (Know Your Business) verification. The latter includes the disclosure of ownership details, specifically identifying the Ultimate Beneficial Owners (UBO). For more information, please continue reading this article.
What Does the KYB Process Include?
Legal entities must undergo a KYB (Know Your Business) process as part of their onboarding with StegX. The KYB process is structured as follows:
- Providing Basic Information about the Company
- Identifying the Company’s Legal Representative who will represent the Company on the StegX marketplace
- Providing Information on the Ultimate Beneficial Owners (UBOs)
- Political Exposed Person (PEP) Declaration
- Providing Relevant Documents via Email to StegX
More information on the respective Steps can be found below.
What Basic Company Information Do I Need To Provide?
The basic company information include the
- Company Name
- Company Legal Form
- Date of Incorporation
- Registered Court of your Company
- Address of the Registered Office or Main Branch
- Company Tax-ID (optional)
- A Link to the Company Website
Legal Representative
In this step, you need to provide information on the individual action on behalf of the entity on the StegX platform. This includes the
- Name of the Authorized Representative
- Email of Authorized Representative
- Company Role of the Authorized Representative
Please notice that StegX is obligated to record all legal representatives of the onboarding legal entity, but only the individual action on behalf of the entity on the StegX marketplace needs to be verified. The individual declared as the authorized representative will be required to complete the video identification process. More information on the video identification process can be found in the section ‘Does StegX Require a Video Identification?’.
What is an Ultimate Beneficial Owner (UBO)?
The term UBO (Ultimate Beneficial Owner) refers to individuals who ultimately own or control more than 10% of a company’s shares or voting rights. Identifying the UBO of a Company is essential for preventing financial crime and ensuring transparency. Therefore you are required to provide the following information:
- For entities registered in Germany, it is necessary to obtain an up-to-date transparency register extract, which lists all persons considered beneficial owners under German law.
- For companies not based in Germany, a current shareholder list or an equivalent document should be prepared. This document must identify all beneficial owners according to the regulatory requirements of the company’s jurisdiction.
More information on how to submit the respective documents can be found in the section 'List of Documents that Need to be Sent to StegX'.
What is a Politically Exposed Person (PEP)?
Politically Exposed Persons (PEPs) are individuals with significant public roles or connections to high-ranking officials. This requirement stems from legal obligations to prevent financial crimes like corruption and money laundering. During the KYB process, you need to conduct a PEP declaration. By conducting thorough PEP screenings, we ensure a safer and more secure investment environment for all our clients.
What Documents Do I Need to Submit for the KYB Process?
To substantiate the information provided in previous steps, the following documents must be submitted via email to onboarding@stegx.finance:
- A Registry Excerpt (not older than 6 months): Providing information about your company's legal representatives, including the identified authorized representative.
- A Power of Attorney (if applicable): Required if the authorized representative of your legal entity is not empowered to enter into legal transactions independently or is not registered in the commercial register.
- Articles of Association, Constitution, or similar documents (e.g., entities constituted by virtue of public/administrative law).
- Transparency Register / Shareholder List (or Alternative): As described under 'What is an Ultimate Beneficial Owner (UBO)?'.
- Group diagram/chart presenting ownership structure within a 10% threshold, preferably supported by official documents such as lists of shareholders, partnership agreements, and other similar official documents.
What does the KYC process include?
If you conduct the onboarding as a natural person you need to conduct a KYC (Know Your Customer) verification that mainly condicts of an and provding a picture of a personal document such as a personal ID card, a passport or a drivers licence and a video identifaction to verify that you are the person you that you are claiming to be.
Does StegX Require a Video Identification?
Yes, video identification is required for both: Legal Entities & Natural Persons. This process is straightforward and typically concludes in just a few minutes. In the case of legal entities, the authorized representative needs to complete the video identification process.
Requirements for Video Identification:
- A computer with a webcam or a smartphone/tablet.
- A valid identification document such as a
- Passport
- National identity card
- Driver's license
- A stable internet connection.
What Happens After the Video Identification?
Video identification marks the final step in the account verification process at StegX. Following this step, your account will temporarily remain in an 'unverified' status as we review the data you have provided. Once this review is complete, your account status will automatically be updated to 'verified'. This change will enable you to begin investing immediately.
Begin Your Investment Journey
Start your journey with StegX by clicking here to join the digital one-stop-shop for institutional real estate. If you have further questions about the KYC or KYB process, please contact us, our team is happy to help.
