What is KYC?
Know Your Customer is the process of verifying a customer’s identity and assessing the risks they present. In the UK, it is required under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 for businesses in scope.
Customer Due Diligence levels
- Simplified due diligence (SDD): for situations assessed as low risk
- Standard customer due diligence (CDD): the default level for most customers
- Enhanced due diligence (EDD): required for higher-risk customers, PEPs and high-risk third countries
Record keeping
Firms must generally keep CDD records for five years after the end of a business relationship. Records should show what was checked, when, and why a decision was made.
Need specific advice?
These guides are general information, not legal advice. Contact us to discuss how the requirements apply to your business.
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