KYC

What Does KYC Mean?

The Quick Answer

KYC means "Know Your Customer."

More Observations...

It is an abbreviation used in banking and finance. KYC is a process used by financial institutions and other companies to verify the identity of their clients in order to mitigate risks. It is a regulatory requirement and is part of Anti-Money Laundering (AML) regulations and compliance activities. The KYC process usually involves the carrying out of "Customer Due Diligence" (CDD), through the collection and verification of basic identity information (like a client's name, date of birth, and address) through reliable and independent sources. It may also include checking various watch-lists, sanctions lists, and country or transaction risk assessments. In the case of customer who has been determined to be higher risk, a more comprehensive set of procedures, known as "Enhanced Due Diligence" (EDD), may be conducted. The specific requirements for KYC processes can vary depending on the jurisdiction and the nature of the product or service being provided.

Image for KYC

When I write KYC, I mean this:

"Know Your Customer"

Summary of Key Points

We have summarized the key points in the table below:

KYC
Definition:	Know Your Customer
Type:	Abbreviation
Guessability:	5: Extremely difficult to guess
Typical Users:	Specialists

An Academic Look at KYC

KYC is classified as an initialism abbreviation, as it is pronounced one letter at a time. Other examples of initialisms are:

• FBI ("Federal Bureau of Investigation.")
• CEO ("Chief Executive Officer.")

Initialisms are different to acronyms, which are abbreviations spoken as words. For example:

• GOAT ("Greatest Of All Time.")
• NATO ("North Atlantic Treaty Organization.")

Example of KYC Used in a Text

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