Know Your Customer (KYC)

The exact documents vary by country and risk level, but a standard KYC check typically requires a government-issued photo ID (passport or national identity card), proof of residential address (utility bill or bank statement no older than three months), and in some cases a selfie or live video for biometric matching. Higher-risk customers or those in certain product categories may also be asked for proof of income or source of funds documentation.

Yes. KYC is legally required for banks, payment institutions, money service businesses, crypto exchanges, investment firms, and many other regulated entities in virtually every jurisdiction. The obligation flows from AML directives and national laws implementing FATF recommendations. Businesses that fail to conduct proper KYC face regulatory sanctions, fines, and in serious cases criminal prosecution of senior managers.

KYC applies to natural persons — individual consumers or sole traders. KYB applies to legal entities such as limited companies, partnerships, and trusts. When a business opens an account, KYC and KYB are used together: KYB verifies the legal entity itself, while KYC is applied to the individuals behind it — the beneficial owners and key controllers. In practice, a single onboarding workflow often combines both processes.

Perpetual KYC is a continuous monitoring approach that replaces periodic review cycles with real-time updates triggered by meaningful changes in a customer's profile or behavior. Instead of reviewing all customers on a fixed annual or biennial schedule, pKYC systems detect events — such as a change of address, a new adverse media hit, or an unusual transaction pattern — and trigger a targeted review only when something relevant changes. This makes compliance more dynamic and resource-efficient.