All IAM glossary termsCustomer Identity · glossary
KYC (Know Your Customer)
Also known as: Know Your Customer
Definition
KYC (Know Your Customer) is the regulatory requirement for financial institutions to verify customer identity at account opening and ongoing — preventing money laundering, terrorist financing, and fraud.
In more depth
Required by Bank Secrecy Act (US), AMLD5/AMLD6 (EU), and equivalent regulations globally. Components: Customer Identification Program (CIP), Customer Due Diligence (CDD), Enhanced Due Diligence (EDD) for high-risk customers.
Digital identity proofing has replaced in-branch ID verification for most consumer financial onboarding.
Related terms
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