KYC
Business & Finance abbreviation · Banking
| Stands for | Know your customer |
|---|---|
| Categories | Business & Finance |
KYC stands for Know your customer, a banking abbreviation also used in technology.
Process banks and other financial institutions use to verify customers' identities and assess their risk, collecting documents such as photo ID, proof of address and, for businesses, ownership details. It is a core requirement of anti-money laundering law worldwide.
Example: The crypto exchange froze withdrawals until he completed KYC by uploading his passport and a selfie.
Usage notes
KYC usually includes a customer identification program, customer due diligence and, for higher-risk clients, enhanced due diligence, plus ongoing monitoring. Fintechs often use "eKYC" with digital identity checks, and KYB (know your business) applies the same idea to corporate clients. Failures can lead to heavy regulatory fines.
Related abbreviations
More banking abbreviations
- FI – Financial institution
- FPS – Faster Payments Service
- G-SIB – Global systemically important bank
- IBAN – International Bank Account Number
- IFSC – Indian Financial System Code
- IMPS – Immediate Payment Service
- LCR – Liquidity coverage ratio
- LDR – Loan-to-deposit ratio
- LLP – Loan loss provision
- LOC – Line of credit
- MT103 – SWIFT MT103 message (single customer credit transfer)
- NACHA – Nacha (formerly National Automated Clearing House Association)