KYC is an acronym for “know your customer”, but it could also mean “know your client”. It refers to a mandatory verification of a customer's identity, typically by a financial institution. It includes information that can be used to verify your identity, like a valid identification card, utility bills with your house address, social security number, etc.
Customers are typically required to submit KYC details during account opening and at times, when there has been a change in the information. For example, if you change your name officially a few months after creating your account, you will be required to update your KYC information.
If you do not complete the KYC process, you may not be able to access all the features on our platform and perform limited transactions without submitting KYC information. In order to gain full access and increase higher deposits and withdrawal limits, customers will need to complete the KYC verification.
What is the General Process of KYC?
Depending on the nature of a business, KYC processes may vary but generally, they fulfill similar objectives. KYC comprises the basic features such as data collection and verification. It also involves customer due diligence and ongoing monitoring.
Why is KYC Mandatory ?
Know Your Customer (KYC) regulations are mandatory for major platform because it ensures they comply with regulatory rules and laws. In the past,investment firm rarely requested KYC details. As the price and interest in investment increased, concerns about crime in areas of money laundering and other illicit activities have also come under scrutiny.
Know Your Customer (KYC) regulations are mandatory for major platform because it ensures they comply with regulatory rules and laws. In the past,investment firm rarely requested KYC details. As the price and interest in investment increased, concerns about crime in areas of money laundering and other illicit activities have also come under scrutiny.
In 2001, KYC verification was introduced and cemented into the Patriot Act. However, it wasn't passed into law until after the 9/11 terrorist attacks. The goal of KYC was to curb illicit activities and to highlight suspicious behaviour as early as possible. Investment firm utilize these data to track transaction patterns, in order to ensure that there is no money laundering and terrorism funding for example. Without KYC verification, an investment firm may be held liable when a user gets away with committing a crime because they failed to do due diligence. Henceforth, major exchanges prefer to remain anti-money laundering (AML) compliant. However, KYC and AML do not convey the same thing.
