KYC, or Know Your Customer, refers to the process of verifying a customer's identity to help comply with regulations and prevent illegal activities such as money laundering and fraud. It is a mandatory step when opening accounts in many industries, particularly in the financial sector. The KYC process typically involves verifying the customer's identity, understanding the nature of their activities, and assessing money laundering risks associated with them. This process is vital for protecting financial institutions against fraud, corruption, money laundering, and terrorist financing
. KYC compliance is a critical function to assess customer risk and a legal requirement for regulated businesses. It involves obtaining personal identifying information from prospective customers and may include procedures such as electronic KYC verification (eKYC), customer identification, due diligence, and ongoing monitoring
. In the banking sector, KYC is essential for ensuring that clients are genuinely who they claim to be. Banks must comply with KYC regulations and anti-money laundering regulations to limit fraud. The KYC process may include ID card verification, face verification, document verification, and biometric verification
. Overall, KYC is an important measure to protect both companies and clients from illegal activities, and its significance is growing as more stringent regulations are being imposed to combat financial crime
