Know Your Customer, or KYC, is the process a business uses to identify and verify a customer and understand who is giving instructions. Where a company, agent or beneficial owner is involved, KYC may extend beyond the person who submits the form.
What it is
KYC can include collecting identity and address information, checking current documents, identifying beneficial owners, confirming authority to act and understanding the purpose of the relationship or transaction. A provider may repeat checks when documents expire, instructions change or risk increases.
Why it is not
KYC is not a one-time universal approval that every bank, notary or recipient must accept. Each organisation applies its own current duties and risk controls. It is also not identical to AML: KYC is an identification and understanding process within the wider AML framework.
Where it appears
KYC appears in bank onboarding and servicing, property transactions, company work and notarial/document processes. A Power of Attorney does not normally remove a recipient’s right or duty to verify the principal, agent and transaction.
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Last reviewed: August 2026