Know Your Customer (KYC)

Know Your Customer (KYC) is a set of processes and procedures that financial institutions and other regulated entities employ to verify the identity of their customers before establishing a business relationship with them. It is a risk mitigation measure to prevent financial crimes such as money laundering, terrorism financing, and identity theft.

KYC involves the collection and analysis of various information and documents from customers, such as their name, address, date of birth, and official identification documents. The collected data is then verified against reliable and independent sources to ensure its accuracy. Additionally, KYC requires ongoing monitoring of customer activities to detect and report suspicious transactions or behaviors. By implementing KYC measures, organizations can protect themselves from legal and reputational risks, comply with regulatory requirements, and maintain the integrity and transparency of the financial system.