Know Your Customer (KYC)

KYC is required by law in most countries. Before opening an account or providing financial services, institutions must confirm who a customer is and assess the risk they might pose.

The process typically includes verifying identity using documents such as a passport or driving licence, confirming the customer's address, and in some cases understanding the source of their money and the purpose of the account. For businesses, institutions must also identify the individuals who ultimately own or control the company.

For example, when opening a bank account online, a customer might be asked to upload a photo of their passport and take a selfie, which the bank uses to verify their identity.

KYC is ongoing, not just a one-time check. Institutions monitor accounts for unusual activity and may ask customers to update their information. Higher-risk customers, such as those in high-risk countries or politically exposed persons, are subject to enhanced checks. While KYC can feel intrusive or slow, it plays a central role in anti-money laundering efforts and protecting the financial system.