KYC (Know Your Customer) is a crucial component of an AML (Anti-Money Laundering) compliance program. While KYC focuses on customer identification and verification, AML encompasses a broader range of measures designed to prevent money laundering and other financial crimes.

AML Program Requirements

These requirements can vary by jurisdiction, but they generally include:

Customer Due Diligence (CDD)

Enhanced Due Diligence (EDD)

Risk Assessment

AML Policies and Internal Controls

Ongoing Monitoring

Suspicious Activity and Transaction Reporting

AML Compliance Officer Appointment

AML Training Programs for Staff

During the CDD process, businesses must identify and verify their customers, which involves conducting KYC checks. At this stage, businesses also define customer risk profiles.