KYC is an acronym for Know Your Customer. It is a crucial and legally required process that financial institutions (banks, investment firms, exchanges, etc.) must undertake to verify the identity of their clients. The primary objective of KYC is to prevent and combat money laundering (AML - Anti-Money Laundering), terrorist financing, and other illegal financial activities.
In practice, the KYC process involves several steps. At the beginning of a business relationship, the client must provide personal data and submit identification documents (e.g., a passport or driver's license). The institution then verifies their authenticity and gathers additional information, such as the source of the client's funds or the purpose of their intended transactions. This process does not end with the initial verification; it continues with ongoing monitoring of the client's activities to detect suspicious transactions that do not match their profile.
.png)
