Know your customer (KYC)
Customer due diligence process used to verify identity, beneficial ownership, risk profile and the purpose of a business relationship.
KYC is a core element of AML and financial compliance. It requires collecting and verifying information on the customer, controlling persons and beneficial owners, assessing source of funds or wealth where relevant, and updating data during the relationship. In Switzerland, KYC duties apply to financial intermediaries and support risk-based monitoring and reporting obligations. The depth of review depends on risk factors such as geography, politically exposed persons, complex structures, unusual transactions and the products used.