Know Your Customer (KYC)

The stages of the client lifecycle from onboarding to offboarding, where KYC and ongoing due diligence fit, how CLM differs from KYC and CRM, and what to look for in CLM software.

Each part of a fund subscription booklet explained: the subscription agreement, investor status questionnaire, tax forms, the AML and KYC section, and how a subscription is reviewed and accepted.

Biometric authentication confirms a person’s identity using a physical or behavioural characteristic instead of — or as well as — a password. The main methods are facial recognition, fingerprint, iris, voice, palm or vein recognition and behavioural biometrics such as typing and swipe patterns.

A KYC checklist sets out what to collect and verify before onboarding a customer. For individuals: identify the customer (full name, date of birth, nationality, address, ID number); verify identity with a government-issued photo ID or reliable electronic verification; verify address where required…

Database verification — also called electronic identity verification (eIDV) — confirms a customer’s identity by matching the name, address and date of birth they provide against independent, reliable data sources such as credit bureaus, electoral rolls, government records or telecom data.

Transfer agents maintain the register of record for securities issuers, which makes shareholder identity verification a different problem from account onboarding. This guide covers registered versus beneficial holders, verification at corporate actions, the lost shareholder and escheatment process, and where AML obligations attach.

The periodic review cycle is an artefact of a time when refreshing a customer file meant posting a form. Perpetual KYC replaces the calendar with a trigger: the file is reviewed when something changes. This guide covers the trigger taxonomy, the data prerequisites most firms underestimate, and how to retire an existing backlog without pausing the programme.

KYC false positives are the single biggest operational tax on compliance teams — but the wrong reduction strategy weakens screening. This guide explains the five root causes and seven techniques to cut FPR while strengthening, not weakening, your AML controls.

KYC is the regulatory process banks and fintech’s use to verify who their customers really are. This guide breaks down the four KYC steps, the laws behind them, and how modern teams automate identity checks without slowing down onboarding.