Know Your Customer
/ˌnoʊ jʊər ˈkʌstəmər/
Definitions
- (n.) A regulatory and compliance process whereby businesses verify the identity of their clients to prevent fraud, money laundering, and financing of terrorism.
Financial institutions must implement Know Your Customer procedures before opening accounts.
Forms
- know your customer
Related terms
See also
Commentary
Typically mandated by law for financial institutions and regulated entities, KYC procedures vary by jurisdiction but share core elements of identity verification and ongoing monitoring.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.