Know Your Customer (KYC)

Know Your Customer (KYC) is a process used by financial institutions to verify the identity of their customers. The process involves collecting and verifying personal information such as name, address, date of birth, and other identifying information. The purpose of KYC is to ensure that customers are who they say they are, and to prevent fraud and money laundering. KYC is a critical part of the customer onboarding process, and is required by law in many countries.

History of KYC

KYC has its roots in the 1970s, when banks began to take a more active role in preventing money laundering. In the 1980s, the Bank Secrecy Act was passed in the United States, which required financial institutions to take steps to prevent money laundering. Since then, KYC has become a standard practice in the banking industry, and is now required by law in many countries.

Comparison of KYC Requirements

Summary

Know Your Customer (KYC) is a process used by financial institutions to verify the identity of their customers. The process involves collecting and verifying personal information such as name, address, date of birth, and other identifying information. KYC is a critical part of the customer onboarding process, and is required by law in many countries. For more information about KYC, visit the websites of the Financial Action Task Force, the International Monetary Fund, and the World Bank.

See Also

• Anti-Money Laundering (AML)
• Customer Due Diligence (CDD)
• Enhanced Due Diligence (EDD)
• Politically Exposed Persons (PEPs)
• Sanctions Screening
• Identity Verification
• Fraud Prevention
• Risk Assessment
• Compliance Management
• Customer Risk Profiling

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