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Redirected from: customer due diligence

Definition: KYC


(Know Your Customer/Client) Guidelines in the financial services industry that ensure their customers are who they say they are. KYC validation requires submitting the appropriate documents to prove name, address and other personal data such as social security number. Banks and other financial institutions are increasingly asking new customers to show several proofs of identity, whereas in the past, simply entering data on a form was sufficient.

CDD and AML
Customer due diligence (CDD) and anti-money laundering (AML) are additional steps that may be taken in the KYC process. CDD ensures that people are whom they claim to be, and AML investigates further when customers fit the profile of a money launderer (country of origin, deposit amounts, etc.).