In order to prevent crimes including bank fraud, bribery, money laundering, and terrorist funding, the financial industry has adopted “Know Your Customer” (KYC) regulations. The pressure to fulfill Know Your Customer (KYC) requirements is increasing, and efficient KYC processes are the backbone of any effective compliance and risk management program. Because of the increasing relevance of anti-money laundering (AML) and know-your-customer (KYC) compliance in light of more strict regulatory requirements, banks and corporations are devoting substantial resources to KYC compliance operations.
However, there is still work to be done before the banks and regulators can fully standardize KYC criteria and coordinate internal processes. KYC aims to identify consumers, learn about their business, verify the legality of their funding, and evaluate the potential for money laundering.