What Is KYC?
KYC (Know Your Customer) is a process of customer's identity verification performed on the regular basis to eliminate bribery, corruption, and other illegal financial activities. It's also a requirement of the international AML (Anti-Money Laundering) regulations.
Who Is Impacted?
KYC requirements apply to most finance related institutions like banks, car sharing services, insurance companies, etc. Regulatory authorities want businesses to introduce strong "due diligence" policies, procedures and systems to assess, monitor and manage risks posed by customers and prevent financial crime.
However the development of the technology and the finance industry itself continuously creates new concerns forcing the regulators push the boundaries of compliance and proving the KYC solutions in place ineffective.
Failure to meet the ever changing KYC/AML compliance standards often leads to hefty fines, huge remedies, temporary suspension and irrevocable reputational losses.