KYC (Know Your Customer)

Know Your Customer (KYC) is a fundamental component of effective AML programs. It involves collecting and analysing client information to establish their identity, understand the nature of their activities, and assess the money laundering risks they may pose. KYC typically includes verifying identification documents, checking against sanctions lists, and understanding the expected pattern of a customer's transactions. For accountants, robust KYC procedures are essential when onboarding new clients and during ongoing client relationships. Effective KYC helps in identifying potential red flags early and ensures compliance with regulatory requirements.