KYC stands for “Know Your Customer” or “Know Your Client.” It is a process of verifying the identity of customers or clients, usually in the financial industry. KYC is used to prevent fraudulent activities such as money laundering, terrorist financing, and identity theft.
During the KYC process, the financial institution will collect and verify personal and financial information from the customer or client, such as name, address, date of birth, social security number, and government-issued identification. The institution will also assess the customer’s risk profile and monitor their transactions for suspicious activities.
KYC regulations vary by country and industry, and financial institutions are required by law to comply with KYC rules and regulations. Failure to comply with KYC regulations can result in legal and financial consequences for the institution.
