Know Your Customer (KYC) is a regulatory and legal process used by financial institutions and other regulated entities to verify the identity of their clients. The purpose of KYC is to prevent identity theft, fraud, money laundering, and terrorist financing. The process involves collecting and verifying personal information from clients, such as their name, address, date of birth, and identification documents like passports or driver's licenses. Additionally, KYC may include assessing the client's financial background, source of funds, and ongoing monitoring of transactions to detect suspicious activities. By implementing KYC procedures, organizations ensure they are conducting business with legitimate and trustworthy individuals, thereby enhancing the security and integrity of their operations and compliance with regulatory requirements.