Know Your Customer (KYC) Policy

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Pick It Up Logistics, Inc. (“Pick It Up Logistics,” “we,” or “our”) is committed to protecting our company, clients, and industry partners from fraud, cargo theft, double brokering, and other illicit activities. This Know Your Customer (KYC) Policy establishes risk-based procedures for verifying the identity and legitimacy of both shipping customers and motor carriers. By implementing strong KYC practices, we safeguard our operations, maintain regulatory compliance, and reduce exposure to financial loss and legal liability.

Before onboarding a new shipper, Pick It Up Logistics will collect, verify, and document essential information:

1. Business Information
    
   • Legal company name and DBA (if applicable)
      
   • Physical business address
      
   • Phone number and email address
      
   • Federal tax identification number (EIN)
      

1. Principal Contact
    
   • Name, title, and contact information for authorized representatives
      

1. Verification Procedures
    
   • Use third-party tools to confirm legal business status and address.
      
   • Review court and media records for fraud, sanctions, or legal issues.
      

Carriers present a higher risk due to potential fraud and double brokering. Pick It Up Logistics will apply rigorous vetting, including:

1. USDOT & MC Number Verification
    
   • Obtain and verify USDOT and MC numbers (or USDOT authority number after 2025)
      

1. Operating Authority Check
    
   • Confirm active authority with FMCSA; ensure not revoked or suspended.
      

1. Safety Ratings
    
   • Review FMCSA safety rating and history (satisfactory, conditional, or unsatisfactory)
      

1. Insurance & Bond Verification
    
   • Confirm that the current liability and cargo insurance meet the minimum requirements.
      

1. Company Information Match
    
   • Validate that the company name, address, and phone number match FMCSA and insurance records.
      
   • Investigate anomalies (e.g., shared addresses across multiple carriers)
      

1. References
    
   • Request and verify references from brokers or shippers who have worked with the carrier
      

1. Driver & Equipment Confirmation
    
   • Confirm driver identity, CDL status, and equipment details directly with the carrier prior to dispatch.
      

KYC efforts extend beyond onboarding and require continuous oversight.

1. Continuous Verification
    
   • Periodically re-verify shipper and carrier credentials.
      

1. Red Flag Monitoring
   Staff will be trained to identify suspicious activity, including:
    
   • Sudden delivery address or payment changes
      
   • Reluctance to provide driver or equipment details
      
   • Freight forwarding companies are listed as the final destination.
      
   • Unauthorized re-posting of brokered loads (double brokering)
      

1. Incident Response
    
   • Investigate suspicious activity immediately.
      
   • Escalate serious cases to law enforcement, regulators, or insurance providers.
      

1. Retention Period
    
   • Maintain all KYC documentation and related records for a minimum of three years or as required by FMCSA and other applicable regulations.
      

1. Accessibility
    
   • Ensure records are stored securely and accessible for internal staff and regulatory review.
      

Pick It Up Logistics leverages digital tools to enhance its KYC program:

1. Digital Verification
    
   • Use online platforms for document validation, insurance confirmation, and driver ID authentication.
      

1. AI-Powered Monitoring
    
   • Employ AI-driven solutions to detect unusual behavior patterns and reduce false positives.
      

Failure to comply with this KYC Policy may result in denial of onboarding, suspension of business activity, or termination of the relationship. Employees must report any suspected fraudulent or non-compliant activity to the Compliance Officer immediately.