Definition
Know Your Customer (KYC) refers to procedures used to identify and verify customers and business partners, including the assessment of identity, beneficial ownership, and risk profiles.
Context
KYC is a core component of anti-money laundering (AML) frameworks and is closely linked to enhanced due diligence (EDD) and risk-based compliance approaches. It is applied during onboarding, transactions, and ongoing monitoring.
Meaning
KYC provides the foundation for preventing money laundering, fraud, and sanctions violations and is a regulatory requirement in many industries.
Example
Verification of customer identity and beneficial ownership before account opening.
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Know Your Customer (KYC)", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/know-your-customer-kyc/, accessed April 18, 2026.