KYC requirements are the obligations placed on regulated firms to identify and verify their customers, assess risk and monitor activity as part of anti-money-laundering and counter-terrorist-financing controls.
Semantic Classification
Content
- Know-your-customer (KYC) requirements are rules that compel regulated businesses to establish and verify the identity of their customers before and during a business relationship. They form part of customer due diligence within anti-money-laundering frameworks and require collecting identifying information and supporting evidence.
- For crypto-asset service providers, KYC underpins transaction monitoring, sanctions screening and reporting of suspicious activity. The depth of checks is risk-based, with enhanced due diligence applied to higher-risk customers and transactions.