Know your customer

Know your customer or know your client (KYC) laws, regulations and guidelines in financial services require regulated businesses and professionals to verify the identity of a customer, and the suitability and risks involved with maintaining a business relationship with them. These procedures fit within the broader scope of anti-money laundering (AML) and counter terrorism financing (CTF) regulations. KYC processes are also used by companies of all sizes to determine whether their proposed customers, agents, consultants, or distributors are anti-bribery compliant and are who they claim to be. Banks, insurers, export creditors, and other financial institutions are increasingly required to make sure that customers provide detailed due-diligence information. Initially, these regulations were imposed only on financial institutions, but regulations now apply in many countries to fintech, virtual assets dealers, non-financial industries, and non-profit organizations.