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Acronyms Dictionary

KYC

Definition

Know Your Customer. A process used by businesses to verify the identity of their clients.

Deep Dive

KYC is a mandatory process for financial institutions and many online businesses to verify the identity of their users. It is designed to prevent money laundering, identity theft, and financial fraud by ensuring that customers are who they say they are.

Examples & Use Cases

  • 1A crypto exchange requiring a photo of a government ID to "pass KYC"
  • 2A bank performing a KYC check before allowing a user to open a new account
  • 3Automating the KYC process using AI-powered facial recognition and document scanning

Related Terms

AMLComplianceIdentity Theft

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