KYC stands for “Know Your Customer.” It is a process that businesses and financial institutions use to verify the identity of their customers. The purpose of KYC is to prevent fraud, money laundering and other illicit activities by ensuring that businesses have accurate information about the individuals or entities they are dealing with.
KYC checks (also referred to as “Anti-Money Laundering checks” or “AML checks”) typically refers to the process of conducting due diligence on the identities of clients or customers in a way that meets certain standards or regulations set by authorities or industry bodies to ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) laws.
That due diligence process may involve obtaining and verifying various types of information about a customer, including personal identification details, address information and sometimes financial information. This process helps establish the customer’s identity and assess the risk associated with doing business with them.
The specific requirements for KYC checks vary from jurisdiction to jurisdiction and also depending on the nature of the services being provide. The regulatory environment is changing all the time and procedures and processes are constantly being updated. Service providers may use a combination of identity documents, biometric data and other verification methods to fulfil the KYC requirements.
The nature of the work that ProSec undertakes on behalf of its clients means that all potential clients will need to undergo KYC checks before ProSec can undertake any work on their behalf.
