Know Your Customer ([[KYC]]) is a process implemented by businesses and financial institutions to verify the identity, legitimacy, and suitability of their customers. It is a legal requirement imposed by regulatory authorities to prevent money laundering, terrorist financing, fraud, and other illicit activities. In legal terms, [[KYC]] refers to the obligation of businesses to establish and maintain appropriate procedures and systems to identify and verify the identity of their customers. These procedures typically involve collecting certain information from customers, such as their name, address, date of birth, national identification number or passport details, and in some cases even conducting background checks or requesting additional documentation. The legal framework for KYC can vary across jurisdictions but generally involves compliance with Anti-Money Laundering (AML) laws and regulations. AML laws aim to detect and prevent the use of financial systems for illegal purposes by requiring businesses to implement measures for [[customer due diligence]] (CDD), risk assessment, record-keeping, and reporting suspicious activities. By complying with KYC requirements, businesses fulfill their legal obligations to mitigate risks associated with money laundering or criminal activities. Failure to comply with KYC regulations can have serious consequences for businesses including fines, reputational damage, loss of license or regulatory approvals. In summary, Know Your Customer is a legal obligation that requires businesses to establish procedures for verifying customer identities to prevent financial crimes. It ensures compliance with AML laws and helps maintain the integrity of financial systems. # References ```dataview Table title as Title, authors as Authors where contains(subject, "KYC") ```