KYC

What does it mean?

KYC stands for “Know Your Customers” or alternatively, “Know Your Client”. It is a process by which banks and businesses verify their customers. It is a regulated documentation process for verification of a person’s identity and their suitability along with potential risks to the businesses involved due to the business relationship.

Points to remember

• KYC allows banks and companies to legally conduct business and prevents or entirely eliminates any possibility of financial crimes against the organisation.
• Almost all banking or online payment systems in the country mandate a KYC verification before one can use the services.