What is KYC?

KYC, or Know Your Customer, refers to the process by which businesses verify the identity of their customers and assess their suitability, along with the potential risks of illegal intentions towards the business relationship. It is commonly used by financial institutions, and other regulated companies to comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. KYC processes typically involve collecting customer data such as name, address, date of birth, and verifying this information against official documents and databases. Ongoing monitoring of customer activity is also a crucial part of KYC.