Scroll Top


    KYC,Know Your Customer

    Introduction to KYC

    • KYC means Know Your Customer and sometimes even Know Your Client.
    • When starting a bank account, the KYC or KYC check is used to verify the client's identity.
    • Banks may decline to open an account or terminate a business relationship if the client fails to meet minimum KYC requirements.

    Understanding Know Your Client (KYC)

    • Those in the securities industry who are dealing with the customers throughout the opening and maintaining of accounts require the KYC.
    • There are two rules implemented in July in the year 2012 that cover this topic collectively: Financial Industry Regulatory Authority Rule 2090 (Know Your Customer) as well as FINRA Rule 2111 (Suitability).
    • These rules are set in place to protect the broker-dealer and the customer and so that brokers and firms deal fairly with clients.

    Importance Of KYC (Know Your Customer)

    • KYC procedures determined by banks involve all the required actions to assure their customers are real, assess, and monitor risks.
    • These client-onboarding processes help avoid and identify money laundering, terrorism financing, and different illegal corruption schemes.
    • KYC process involves ID card verification, face verification, document verification like utility bills as proof of address, and biometric verification.
    • Banks must comply with the KYC regulations and anti-money laundering regulations to restrain fraud. KYC compliance responsibility lies with the banks.
    • In case of negligence to comply, heavy penalties can be implemented.

    Popular Topics

    Latest Articles

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use


    ISO 27001

    Data Center


    SSL Certified Site

    128-bit encryption