KYC
Know Your Customer
Definition
The process by which financial institutions verify the identity of their clients and assess the risks of doing business with them. KYC involves collecting identification documents, verifying beneficial ownership, and understanding the nature and purpose of the business relationship.
Regulatory Context
KYC is a cornerstone of AML/CFT frameworks globally. FATF Recommendation 10 requires institutions to identify and verify customers at the outset of the relationship and on an ongoing basis.