Know Your Customer/Supplier (KYC) Glossary Definition

Know your customer (alternatively, know your client or 'KYC') is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship. The term is also used to refer to the bank regulations and anti-money laundering regulations which govern these activities. Know your customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents, consultants, or distributors are anti-bribery compliant. Banks, insurers and export creditors are increasingly demanding that customers provide detailed anti-corruption due diligence information.

See also: KYC.

In security and compliance work, this term helps teams describe controls, risks, identity practices, standards, audits, or protective technologies. It is relevant when managing access, reducing exposure, documenting safeguards, or demonstrating accountability.