supportKnow Your Customer
Definition:
Know your customer (KYC) is the due diligence and regulation that financial institutions and regulated companies must perform in order to identify their clients. Relevant information needs also to be identified in order for those organisations to do financial business with them.
KYC is obtaining and using information that is over and above basic identification of that customer.
One aspect of KYC checking is to verify that the customer is not on any list of known fraudsters or money launderers.
Increasingly, it is deemed good practice to use KYC information in anti-fraud prevention tactics.
Related information:
Experian's authentication solutions offered in the UK, use an electronic, risk-based approach to identify individuals. An individual's biographical data is compared against the 1 billion records that Experian holds to verify consumers. It looks at the number of electronic records the individual can be matched against, how far back in time they go and the processes that were in place when the records were created. It also checks the data against lists of known terrorists, politically-exposed individuals and money launderers. An authentication decision is then given in seconds, with no need for paper-based proofs.
