Definition
Background Check
A background check is the process of investigating an individual’s or entity’s history and activities to verify their identity, qualifications, and potential risks before establishing a business relationship. In banking, background checks are a key part of customer due diligence (CDD) and know your customer (KYC) procedures.
Synonyms
Background screening, Due diligence checks, KYC checks
Acronyms
BC
Examples
Before onboarding the high-net-worth individual as a private banking client, the bank conducted extensive background checks including verifying source of wealth, screening for political ties, and checking against global sanctions lists.
FAQ
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