KYC stands for Know Your Customer or Know Your Client. It is a mandatory process of identifying and verifying the clients identity when opening an account and periodically over time. KYC is an authentication process mandated by the Reserve Bank of India and is an integral part of all financial institutions. KYC involves several steps to establish customer identity, understand the nature of customers’ activities, and assess money laundering risks associated with customers. KYC checks are done through an independent and reliable source of documents, data, or information. The process is mandatory under the Prevention of Money Laundering Act, 2002, and all customers need to provide supporting documents to prove their identity and addresses. KYC is an important tool because it protects financial institutions and prevents illegal activities. Effective KYC processes are the backbone of any successful compliance and risk management program, and the demands of meeting KYC obligations are intensifying.