KYC (Know Your Customer)
KYC is the process where financial service providers verify customer identity, legally required to prevent money laundering and terrorism financing.
KYC requirements are anchored in the Netherlands in the Wwft (Money Laundering and Terrorism Financing Prevention Act). Financial service providers — banks, fintechs, crypto exchanges — must verify customer identity at opening, monitor for suspicious behaviour, and report unusual transactions to FIU-NL. For crypto exchanges: ID verification, liveness check, source-of-funds checks at larger amounts.
Example
At Bitvavo registration: ID photo, selfie with ID (liveness), address verification via recent bill, source of funds. Without KYC no trading possible — regulatory requirement since 2020.
Frequently asked questions
Is KYC the same as AML?
KYC = identification. AML (Anti-Money Laundering) = broader process including transaction monitoring, sanctions screening, suspicious activity reporting. KYC is part of AML.
Related terms
Further reading
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