Know Your Customer
Know Your Customer (KYC) is a regulatory and business process used by financial institutions and other regulated entities to verify the identity of their clients and assess their risk profiles. It involves collecting and analyzing customer information to prevent money laundering, terrorist financing, fraud, and other financial crimes. KYC is a critical component of anti-money laundering (AML) compliance frameworks and helps organizations ensure they are not facilitating illicit activities.
Developers should learn KYC when building applications for financial services, fintech, banking, or any regulated industry where customer identity verification is required by law. It is essential for implementing secure onboarding processes, compliance systems, and risk management tools. For example, in digital banking apps, payment platforms, or cryptocurrency exchanges, developers must integrate KYC checks to meet regulatory standards and protect against fraud.