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Know Your Customer (KYC) Definition

KYC refers to the process financial firms use to verify the identity of their clients before providing services.

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What is Know Your Customer?

KYC procedures typically involve verifying identification documents, proof of address, and source of funds.

These checks help firms comply with regulatory requirements and reduce the risk of financial crime.

Example of Know Your Customer

A broker requesting a copy of a client's passport and a recent utility bill during account opening is carrying out KYC checks.

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