Describe KYC/AML.

Question

Describe KYC/AML.

Accepted Answer

KYC (Know Your Customer) and AML (Anti-Money Laundering) are essential processes for verifying customer identities and preventing financial crimes.

KYC involves collecting customer information to verify their identity, such as name, address, and date of birth.
AML refers to laws and regulations aimed at preventing money laundering activities, ensuring financial institutions report suspicious activities.
For example, banks must conduct KYC checks before opening accounts to ensure they know who their customers are.
AML measures include monitoring transactions for unusual patterns that may indicate money laundering, such as large cash deposits.
Both KYC and AML are crucial for compliance with regulatory requirements and protecting the financial system from illicit activities.

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