The practical significance of the Know-Your-Customer (KYC) requirements consists in the rule that any individual listed by the registering entity in its registration application in a capacity requiring access to the tracking system must comply with the Know-Your-Customer requirements before access to the tracking system will be granted.
General requirements
The Compliance Instrument Tracking System Service (CITSS) accounts administrator cannot provide access to the tracking system to an individual until the California Air Resources Board Executive Officer (Executive Officer) has determined the individual applying for participation has complied with the know-your-customer (KYC) requirements.
Also prior to participating in an auction or the Allowance Price Containment Reserve sale, any primary or alternate account representative that will be submitting bids on behalf of entities eligible to participate in sales must have complied with the KYC requirements.
The requirements at issue are in addition to any requirements contained elsewhere in the relevant provisions that apply to the functions the individual will undertake in the tracking system. All documents submitted in matters relating to KYC must be in English.
Individuals with a criminal conviction in the five previous years constituting a felony in the United States are ineligible for registration and participation in the cap-and-trade program.
Documentation to be provided by the individual
In order to fulfill KYC requirements the individual must provide documentation of the following:
1) name;
2) the address of the primary residence of the applicant, which may be shown by any of the following:
- a valid identity card issued by a state with an expiration date;
- any other government-issued identity document containing an individual’s primary address; or
- any other document that is customarily accepted by the State of California as evidence of the primary residence of the individual;
3) date of birth;
4) employer name, contact information, and address;
5) either a passport number or driver’s license number, if one is issued;
6) an open bank account in the United States;
7) employment or other relationship to an entity that has registered or has applied to register with the California cap-and-trade program if the individual is listed by an entity registering;
8) a government-issued document providing photographic evidence of identity of the applicant which may include:
- a valid identity card or driver’s license issued by a state with an expiration date and date of birth; or
- a passport; and
9) any criminal conviction during the previous five years constituting a felony in the United States. This disclosure must include the type of violation, jurisdiction, and year.
Verification of information
Any copy of a document submitted must be notarized by a notary public no more than three months before submittal.