What is KYC?

KYC or "Know Your Customer," is a procedure implemented by companies, especially in the financial sector, to identify and verify the identity of their clients or customers. This process usually involves collecting personal data such as name, address, date of birth, and identification documents (such as a passport or driver's license). 

In the financial industry, KYC is an important step to protect the financial system from abuse. Through the KYC process, banks and other financial institutions can understand the risk profile of their customers and monitor transactions for suspicious activity. This not only helps in complying with applicable legal and regulatory rules but also contributes to building trust and integrity in the financial system as a whole.

Carrying out KYC can be a complex and time-consuming process, especially in collecting and verifying the required documents. With the development of technology, many financial institutions are now using digital solutions to simplify the KYC process, including the use of AI and machine learning to validate identity documents. However, challenges remain, especially in balancing security needs with a seamless customer experience.

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