Know Your Customer (KYC) procedures and providers in financial sectors

Know Your Customer (KYC) refers to the mandatory procedures used by businesses to verify client identities, assess potential risks, and monitor ongoing relationships. These processes are essential for preventing fraud, money laundering, and the financing of terrorism. While commonly associated with banking, KYC obligations extend to various sectors, including insurance, cryptocurrency platforms, real estate, and temporary staffing agencies.

In the digital landscape, KYC involves several stages, from initial data collection to continuous surveillance. The process often distinguishes between individual identity verification and Know Your Business (KYB) for corporate entities. Modern implementation ranges from manual reviews to automated digital solutions designed to ensure compliance with anti-money laundering (AML) regulations.

Various global providers offer specialized services for identity verification and compliance. Notable providers include AU10TIX, Entrust (formerly Onfido), iDenfy, IDnow, Jumio, Ondato, Trulioo, and Veriff. These companies offer diverse capabilities such as biometric authentication, document verification, liveness detection, and sanctions screening to assist virtual asset service providers (VASPs) and other regulated financial institutions.