A Guide to Know Your Customer Compliance

A Guide to Know Your Customer Compliance

The United Nations Office on Drugs and Crime estimates that criminals launder around $2 trillion annually or about 2-5% of global GDP.1  As financial institutions (FIs) and organizations face mounting regulatory pressures and increasingly sophisticated financial crimes, it has become more critical than ever for banks to maintain a strong Know Your Customer (KYC) compliance program.

A foundational element of any successful KYC program is the ability to accurately verify customer identities. By verifying customer identities and monitoring for risk factors, FIs can prevent financial crimes like money laundering and fraud, as well as the reputational damage and fines that can come along with enabling these crimes.

Historically, KYC has involved customers uploading identity documents or going to a branch to provide them in person, which was time-consuming and costly. In recent years, digital identity verification solutions have become more widely available, which has made the KYC compliance process more efficient and effective for both FIs and customers.

In this guide, we’ll dive into:

  • The key requirements of KYC compliance in the U.S. 
  • Trending fraud tactics impacting KYC initiatives
  • The role of identity verification in creating convenient customer experiences while ensuring a robust KYC compliance program
  • KYC best practices including how FIs can enhance their program with advanced analytics and consortium data


United Nations Office on Drugs and Crime, Money Laundering Overview, Feb. 2023

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