Know Your Customer (KYC)

Know Your Customer (KYC), also Know Your Client, is a set of guidelines and regulations within the broader scope of a financial provider’s anti-money laundering (AML) policy. It stipulates that the company is responsible for the verification of its clients’ identities. It ensures you are who you claim to be and have no illegal intentions towards the relationship with the financial institution. In practice, it means that most P2P lending sites will ask you to verify your identity before you can start investing. They usually use an external verification app to upload a scan of your ID and take a selfie.