KYC (Know Your Customer) is the process used by companies - especially in financial and digital industries - to identify and verify the identity of their customers in order to prevent fraud.
This process involves collecting and validating identification information and official documents. It is applied both when opening an account and periodically thereafter, to ensure that customer data remains accurate and up to date.
In the music industry, verifying the identity and legitimacy of new users is also essential before granting them access to distribution platforms and services.
Why KYC is important in the music industry
Prevents fraud at the source
It significantly reduces the risk of fraudulent content, artificial streaming activity, and copyright infringements.Protects your business
Ensures financial and reputational protection by working only with legitimate and trustworthy clients.Compliance with DSP requirements
A strong KYC process demonstrates a clear commitment to transparency, integrity, and industry best practices.
✅ How to conduct a KYC check
1. Collect basic identification information
Full legal name
Address
Date of birth (for individuals)
Business details (legal name, registration number, contact information)
2. Request official documentation
For individual artists: National ID, passport, or driver’s license
For labels or companies: Company registration, tax ID, or ownership documentation. Additionally, request financial documentation from the entity to assess its activity and financial standing.
3. Cross-check information with public records
Verify that the company is active and that personal data matches official sources.
4. Verify catalog ownership
Confirm that the artist or label actually owns or represents the intellectual property they claim. This may include distribution contracts, authorship registrations, rights assignment agreements, or any other documentation that proves their connection to the content they intend to distribute.
5. Perform sanctions and PEP checks
Screen against international sanctions lists and Politically Exposed Persons (PEP) databases.
6. Verify payment details
Ensure that bank or PayPal accounts belong to the same verified individual or entity.
7. Review registration IP address
Check that it matches the declared location and identify VPN usage or suspicious IPs.
8. Assess online presence
Active social media profiles, websites, or professional platforms (such as LinkedIn) help confirm legitimacy. The digital footprint should be consistent with the activity and catalog they claim to represent.
9. Request sample material
Asking for previous work or catalog samples helps verify that applicants are genuine creators.
🚨Policy for high-risk clients
If an artist or label shows red flags during the KYC process - such as inconsistent documentation or suspicious behavior - we recommend:
Requesting additional documentation and conducting deeper reviews
Rejecting suspicious leads: protecting the platform’s integrity is more important than onboarding a potentially fraudulent client
Fraud is easier to prevent when you monitor information and payment flows from the very beginning. Knowing your artists not only protects your business and reputation, but also helps maintain a safer and more transparent music industry.
More resources on how the music industry fights fraud
Music Fights Fraud Alliance (MFFA)
https://musicfightsfraud.com/resources/know-your-artists-(kya)