Know Your Customer

Know Your Customer (KYC) is a legal requirement for financial institutions and businesses to comply with anti-money laundering (AML) laws. KYC is a critical part of the fight against money laundering and terrorist financing. 
KYC involves a number of steps to establish a customer's identity, understand their activities, and assess the risk of money laundering: 
  • Verifying a customer's identity using documents like a passport, voter's ID, or driver's license 
  • Verifying a customer's face 
  • Verifying a customer's address using documents like utility bills 
  • Using biometric verification 
  • Assessing the source of a customer's funds 
KYC is a fundamental practice to protect an organization from fraud and losses. Financial institutions that enable money laundering or terrorist financing could face fines, sanctions, and reputational damage. 
A successful AML compliance program typically includes: KYC during onboarding and throughout the customer lifecycle, Assessing and monitoring customer risk, Methodical recordkeeping, and Policies and training to keep employees up to date. 

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