# Know Your Customer (KYC)

*Banking & Payments — Finicade finance glossary*

KYC is the obligation to verify who a customer is, understand their expected activity, and keep that knowledge current. It's the foundation of anti-money-laundering control and the reason account opening asks questions that feel intrusive. Enhanced due diligence applies to higher-risk customers, including politically exposed persons, whose accounts must be monitored more closely rather than refused outright.

**Also known as:** KYC, customer due diligence, identity verification

**Related terms:** [Anti-Money Laundering (AML)](https://finicade.com/glossary/anti-money-laundering), [Sanctions Screening](https://finicade.com/glossary/sanctions-screening), [Suspicious Activity Report](https://finicade.com/glossary/suspicious-activity-report), [Open Banking](https://finicade.com/glossary/open-banking), [Compliance](https://finicade.com/glossary/compliance)

Source: https://finicade.com/glossary/know-your-customer