2025-04-07
KYC stands for "Know Your Customer." It is a process used by businesses, particularly in the financial sector, to verify the identity of their clients. The purpose of KYC is to prevent fraud, money laundering, and terrorist financing by ensuring that the customers are who they claim to be. This process typically involves collecting personal information such as name, address, date of birth, and identification documents (like a passport or driver's license). KYC procedures help organizations assess risks associated with clients and maintain compliance with regulatory requirements. The overall aim is to promote accountability and transparency in financial transactions, leading to a more secure business environment. KYC is a crucial part of customer due diligence and risk management for banks and other financial institutions. 🕵️♂️💼