AML & Compliance
Beginner
KYC (Know Your Customer)
💡 In plain English: The process banks use to verify who you are, what you do, and where your money comes from.
Definition
A mandatory due diligence process requiring financial institutions to verify the identity, suitability, and risks of their customers before and during an ongoing relationship.
📌 Real-World Example
When you open a bank account, you submit your passport, address proof, and income details. The bank verifies these — that is KYC.
Related Terms
AML (Anti-Money Laundering)
The rules and systems banks use to stop criminals turning illegal...
CDD (Customer Due Diligence)
The standard level of identity and background checks a bank...
EDD (Enhanced Due Diligence)
Extra-deep background checks applied to high-risk customers —...
PEP (Politically Exposed Person)
Politicians, senior government officials, judges, and military...
Beneficial Owner
The real human being who ultimately owns or controls a company or...
⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.