Related Terms
DEFINITION
Know Your Customer (KYC)
KYC refers to the regulatory requirements that obligate financial institutions to verify the identity of their clients, understand the nature of their business activities, and assess the money laundering risks they may pose in order to prevent financial crimes.
Synonyms
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Acronyms
KYC
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Synonyms
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Acronyms
KYC
Examples
The bank’s KYC procedures include collecting identifying documents, screening against PEP and sanctions lists, and assessing the customer’s risk profile.
FAQ
What information is collected as part of KYC?
KYC involves collecting identifying information, proof of address, source of funds, and screening against PEP and sanctions lists.
How often must KYC be performed on clients?
KYC should be done when onboarding new clients and periodically thereafter based on the client's risk profile.
What are the penalties for non-compliance with KYC regulations?
Non-compliance can result in large fines, reputational damage, and even criminal charges in severe cases.
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