{"ok":true,"canonical_url":"https://dealroom.so/glossary/aml-kyc-checks","api_url":"https://dealroom.so/api/public/glossary/aml-kyc-checks","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"aml-kyc-checks","term":"AML/KYC checks","group":"People and paperwork","definition":"These are mandatory background checks performed by lenders to verify your identity and ensure you're not involved in illegal financial activities. They protect against fraud and comply with federal regulations.","what_it_means":"Before approving your SBA loan, the lender must conduct AML/KYC checks on all key principals. This involves verifying your identity, reviewing credit reports, and checking for any criminal offenses or debarment from federal programs. Expect to provide detailed personal information and documentation.","url":"https://dealroom.so/glossary/aml-kyc-checks","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"criminal-offense","term":"Criminal offense","url":"https://dealroom.so/glossary/criminal-offense"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"}],"related_questions":[{"question":"Who specifically counts as an 'associate' for SBA business size checks?","url":"https://dealroom.so/sba-loans/basics/who-specifically-counts-as-an-associate-for-sba-business-size-checks"},{"question":"Does the lender need to collect separate consent forms for background checks from non-owner spouses?","url":"https://dealroom.so/for-lenders/questions/does-the-lender-need-to-collect-separate-consent-forms-for-background-checks-from-non-owne"},{"question":"Are there any specific character or background checks for owners applying for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/are-there-any-specific-character-or-background-checks-for-owners-applying-for-an-sba-7-a-l"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — AML/KYC checks","url":"https://dealroom.so/glossary/aml-kyc-checks","source_type":"DealRoom Data"}}