Know Your Client or Know Your Customer (KYC) is a standard in the security and investment industry that ensures entities demand and obtain essential information about their clients; their risk tolerance, integrity, investment knowledge, financial position, vulnerabilities, and the threats they may pose. KYC compliance are requirements and policies linked to risk management, customer acceptance yardstick, and transaction monitoring. KYC standards are used to verify information about entities you seek to relate to or do business with. In the finance and investment sectors particularly, KYC compliance makes it compelling for organizations to make a reasonable effort to know the client’s background. The Financial Crimes Enforcement Network (FinCEN) establishes minimum KYC requirements, including verifying beneficial owners and setting standards for dealing with third parties. Financial institutions require that a new customer provide detailed financial information before opening an account. The KYC rule is important at the beginning of a customer-broker relationship to establish the essential facts of each customer before any recommendations are made. KYC standards can help check terrorism funding and money laundering.

Prof. Essia is an economist with several years of teaching, research, and consulting experience. He has authored several books and scholarly articles.

Dr. Ehiwario holds a Ph.D. in banking and risk management. An excellent audit, fraud & risk management expert, he has worked for high-profile private and public organizations in the UK and Nigeria.