Guides
Compliance guides
KYC and AML compliance is how U.S. businesses confirm who their customers are and keep their services from being used to move criminal money. KYC (know your customer) covers identifying and verifying customers. AML (anti-money laundering) is the wider set of rules, mostly under the Bank Secrecy Act, that covers written programs, reports to FinCEN and recordkeeping.
Banks, credit unions, money services businesses, broker-dealers and other covered financial institutions must run a written AML program. Most other businesses don’t have to, but every U.S. person must comply with OFAC sanctions, and many businesses run KYC checks anyway to stop fraud or because a bank or payment partner requires it. These guides explain the rules in plain English and link to the official sources. They’re general information, not legal advice.
KYC and AML in order
- Know your customer checklist. The core steps of a KYC check, from collecting details to keeping records.
- Customer identification program (CIP). What 31 CFR 1020.220 requires before a bank opens an account, including online.
- Enhanced due diligence (EDD). When higher-risk customers need extra checks, and what those look like.
- Know your business (KYB). How to verify a business and the people behind it.
- Sanctions screening. How name screening against OFAC and other lists works.
KYC and AML terms in one line each
- KYC (know your customer)
- Confirming a customer is who they say they are, and understanding who you’re dealing with. KYC checklist.
- CIP (customer identification program)
- The U.S. rule setting the minimum identity details a bank must collect and verify before opening an account. CIP guide.
- CDD (customer due diligence)
- Understanding each customer relationship, its purpose and its risk, and monitoring it over time.
- EDD (enhanced due diligence)
- Extra checks for higher-risk customers. EDD guide.
- UBO (ultimate beneficial owner)
- A person who owns 25% or more of a company or has significant control over it. U.S. rules say “beneficial owner.”
- KYB (know your business)
- Verifying a business customer and the people who own and run it. What is KYB.
- AML (anti-money laundering)
- The rules and programs that stop criminals from moving money through legitimate businesses.
- OFAC (Office of Foreign Assets Control)
- The U.S. Treasury office that runs sanctions programs and publishes the SDN list. Sanctions screening guide.
All guides in this topic
Put the checks into practice
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