KYC
The process of verifying identity and source information for a party.
Definition
KYC is The process of verifying identity and source information for a party. Teams usually run into it when the operation needs to prove who did what, who a counterparty really is, or where suspicious activity may be hiding.
What makes it useful is that control frameworks only work when identity checks and change history are easy to verify later. The term is usually part of a larger trail, not a one-off checkbox.
Use cases
Use KYC to prove who a party is and how a record changed over time.
Review KYC when the team needs to spot suspicious activity before it turns into a bigger control issue.
Track KYC so operations can keep identity checks and system history ready for later review.