KYC stands for "Know Your Customer." It is a process that businesses and financial institutions use to verify the identity of their customers. The primary purpose of KYC is to prevent fraud, money laundering, and other illicit activities by ensuring that customers are who they claim to be.

KYC involves collecting and verifying information about customers, including their identity, address, financial transactions, and business relationships. This information helps businesses assess the risk associated with a particular customer and ensures compliance with regulatory requirements.

The KYC process typically includes the following steps:

• Customer Identification: Collecting basic information such as name, date of birth, address, and official identification documents like a passport or driver's license.

• Customer Due Diligence (CDD): Conducting a risk assessment based on the customer's profile, business activities, and transaction history.

• Ongoing Monitoring: Regularly reviewing and updating customer information to identify any changes in their risk profile.

KYC is crucial in various industries, especially in banking and finance, where it helps prevent financial crimes and ensures compliance with anti-money laundering (AML) regulations. It is also important in other sectors, such as telecommunications, online marketplaces, and gaming, where identity verification is essential to maintain a secure and trustworthy environment.