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Finance & Banking vocabulary · Regulation & Compliance

KYC

Meaning in finance & banking, with examples

abbreviationCore term

In finance & banking, KYC means: Short for know your customer: the checks a bank makes to confirm a customer's identity, address and source of funds before and during the business relationship.

In Turkish: müşterini tanı, müşterinin tanınması

How it is used

Said letter by letter: K-Y-C. Used in onboarding, compliance and audits: KYC checks, KYC documents, KYC refresh. It is part of anti-money laundering rules; for higher-risk clients banks carry out enhanced due diligence.

Example sentences

  1. We can't open the account until KYC is complete.

  2. The client's KYC documents had expired, so we asked for a new proof of address.

Common collocations

  • KYC checks
  • KYC documents
  • KYC process
  • complete KYC
  • KYC refresh
  • AMLShort for anti-money laundering: the laws, controls and procedures that banks use to prevent, detect and report money laundering.
  • complianceFollowing the laws, regulations and internal rules that apply to a bank; also the name of the department that checks that this happens.
  • money launderingHiding the criminal origin of money by moving it through banks, businesses or transactions so that it looks legal.
  • due diligenceA careful investigation of a company, deal or customer before an agreement, to check the facts and find any risks or legal and financial problems.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Regulation & Compliance

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This page explains English vocabulary for learners. It is not financial advice.