Definition
Know your customer is the set of customer-identification and due-diligence measures used to understand who a financial customer is and associated risks.
In market context
KYC commonly includes identity verification, beneficial-ownership checks where relevant, expected account activity, and risk classification. Information may be refreshed when documents expire, activity changes, or enhanced review is required, so approval at onboarding is not permanent clearance for every transaction. The process supports AML and sanctions obligations and can lead to requests for source-of-funds evidence or transaction explanations during review.
Source
Use the primary source for fuller regulatory or market context.
