Know Your Customer (KYC) – Trusting someone you have never seen

A guide by Penneo

In the past, it wasn’t that difficult to get to know your customers. High-value business transactions did not require particular identification procedures to take place. Most businesses were local businesses, you probably already knew your client even before they became such – or if you didn’t, someone you knew likely knew them. In today’s global, internet-based economy, though, the game has changed.

Companies are now under growing pressure to verify the identity of their clients along with their potential risk factors or illegal intentions.

Digitization has made the world a single interconnected marketplace, crossing the traditional language and distance boundaries between businesses and consumers. While this created unprecedented economic opportunities, the risks and complexity of cross-border relationships have also significantly increased. There is no guarantee that the person who approaches your business is who they say they are – nor could you know what they might be involved with.