{"id":248467,"date":"2022-10-03T13:26:49","date_gmt":"2022-10-03T13:26:49","guid":{"rendered":"https:\/\/imarticus.org\/?p=248467"},"modified":"2024-03-29T10:56:15","modified_gmt":"2024-03-29T10:56:15","slug":"anti-money-laundering-know-your-customer-and-customer-identification-program","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/anti-money-laundering-know-your-customer-and-customer-identification-program\/","title":{"rendered":"Anti-Money Laundering: Know Your Customer and Customer Identification Program"},"content":{"rendered":"

Anti-Money Laundering: Know Your Customer and Customer Identification Program<\/span><\/h2>\n

The term “know your customer” or KYC refers to verifying and investigating a company’s customers to prevent money laundering. The term “customer identification program,” or CIP, is used by banks and non-banks offering financial services. This guide will explain these terms and how they relate to each other.<\/span><\/p>\n

What Is Money Laundering?<\/b><\/h2>\n

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It is the process of hiding the source of money. It’s a crime, not just against the law\u2014it’s also a severe threat to national security. Money laundering differs from drug trafficking or terrorism in that it involves large-scale criminal activity on behalf of organized crime syndicates or terrorist organizations. In most cases, these groups launder their profits through legitimate businesses and banks to avoid detection by authorities trying to track down illegal activity within their own country’s borders.<\/span><\/p>\n

What Is KYC?<\/b><\/h2>\n

Know Your Customer is an abbreviation for KYC, which refers to the process of collecting information about a customer or client. The term also gets used in anti-money laundering (AML) programs, which refers to identifying and verifying individuals involved in financial transactions.\u00a0<\/span><\/p>\n

Know Your Customers (KYC) can refer to:<\/b><\/h2>\n