The KYC guidelines in financial services require that professionals make an effort to verify the identity, suitability, and risks involved in maintaining a business relationship.

The procedures fit within the broader scope of a bank’s anti-money laundering (AML) policy. Companies of all sizes also employ KYC processes to ensure their proposed customers, agents, consultants, or distributors are anti-bribery compliant. They are actually who they claim to be. Banks, insurers, export creditors, and other financial institutions increasingly demand that customers provide detailed due diligence information.