Know Your Customer (KYC) Process
What is the KYC Process?
KYC stands for "Know Your Customer." It is a due diligence process financial companies use to verify customer identity and assess and monitor customer risk. KYC ensures customers are who they say they are.
Compliance with KYC regulations helps prevent money laundering, terrorism financing, and more run-of-the-mill fraud schemes. By verifying a customer’s identity and intentions when the account is opened and then monitoring transaction patterns, financial institutions can more accurately pinpoint suspicious activities.
To meet KYC requirements, clients must provide proof of their identity and address, such as ID card verification, face verification, biometric verification, and/or document verification. Examples of KYC documents include a passport, driver's license, or utility bill.
KYC is a critical process for determining customer risk and whether the customer can meet the institution’s requirements to use their services. It’s also a legal requirement to comply with Anti-Money Laundering (AML) laws. Financial institutions must ensure clients are not engaging in criminal activities while using their services.
How does Zena use KYC?
KYC is a legal requirement for financial institutions and financial services companies to establish a customer’s identity and identify risk factors. KYC procedures help prevent identity theft, money laundering, financial fraud, terrorism financing, and other financial crimes. Failure to meet KYC requirements can result in steep fines and penalties.
During your application process, Zena, along with our partner Stripe, will verify your identity and your business identity and ensure you are who you say you are to protect you and your business.
We do not use this information for any other purposes, and we take your privacy and the security of your data very seriously. Stripe’s security tools and best practices ensure that your sensitive information is safely stored and encrypted. You can read more on that here. You can learn more about the safeguards Stripe has put in place to protect your information in the Stripe Privacy Center.