Full Form KYC is Know Your Customer. Know your customer or KYC is a process that financial institutions and companies follow to identify their customers. It involves three steps – identifying the client, verifying their identity using government-issued documents such as id proofs and address proof etc., keeping records of all activities for future reference.
KYC stands for “Know Your Customer” which refers to bank policies where businesses request personal information from potential clients so they can verify who they are doing business with before accepting them as regular customers. The first step in this procedure includes confirming an individual’s identification by checking the source of his funds against documentation including ID cards, passport details among others depending on country specific requirements followed by authenticating other sources like debit/credit card numbers.
- Know your customer (KYC) is a process that banks, financial institutions and other regulated industries use to identify their customers.
- The goal of KYC is to prevent criminals from opening accounts or doing business with the company.
- There are three levels of KYC verification – basic, enhanced and full form.
- Full-form KYC requires you to provide personal information such as your name, address, date of birth etc., which may be used for identity verification purposes.
- Enhanced KYC only requires bank account number and sort code but does not need any additional personal information.
- Basic KYC doesn’t require any personal details because it just needs proof that you’re over 18 years old.
- KYC stands for Know Your Customer.
- It is a process that banks and other financial institutions use to identify the customers they are dealing with.
- The purpose of this process is to make sure that the customer has not been involved in any illegal activity, terrorism or money laundering.
- Banks have different criteria for how they go about doing this but often it involves verifying identity documents, checking bank account balances and looking at credit history records.
- When you open an account with a bank, you will be asked to provide your personal information such as date of birth and address so that the bank can do their due diligence on you before opening your account.