An abbreviation for "Know Your Customer" or "Know Your Client". This is the process by which businesses that deal in financial services verify the identity of their customers. This ensures compliance with AML (Anti-Money Laundering) regulations and helps prevent criminal activity.
The objective of the KYC process is to prevent companies from being used, intentionally or unintentionally, by criminal elements for money laundering activities. Related procedures also enable companies to better understand their customers/clients and their financial dealings, which helps them manage risk accordingly.
Exact KYC procedure and legal requirements depend on the country in which the service provider company is registered, as well as the users country of residence.