Banks and other financial organizations employ a procedure known as "Know Your Customer" (KYC) to collect identifying information and contact details from current and potential customers. Its goal is to stop financial account abuse as well as fraud, money laundering, and other illegal conduct. US banks are required by law to utilize KYC in order to comply with the USA Patriot Act of 2001. The Financial Action Task Force (FATF) was founded in 1989 to combat money laundering globally. Anti-Money Laundering (AML) procedures are used to achieve this goal, and FAFT establishes standards and offers advice. Different laws, rules, and regulations are put into effect by member nations and jurisdictions in order to comply with the AML requirements. Together, KYC and AML can assist stop fraudulent and illegal financial activities. KYC procedures typically begin before a person signs up as a customer. Before opening an account, financial organizations must first confirm a potential customer's claimed identification. This procedure could change for every bank because there are no established legal requirements for verification. Driver's license or other government-issued photo ID Passport Social Security number PAN card Voter ID Card Address verification is also required as part of the KYC requirements. Depending on the policies of the bank, applicants may provide different types of documentary verification. Utility bills, account statements from various banks or credit card companies, or leasing agreements are a few examples. Banks are required to carry out recurring record changes after opening an account for a consumer. This indicates that throughout their banking relationship, they periodically "recertify" their customers by requesting KYC information. Additionally, they categorize their customers' risk levels and keep an eye on their transactions to make sure they comport themselves as they should. KYC procedures are not only used by financial institutions. The Financial Industry Regulatory Authority's (FINRA) KYC Rule 2090 is followed by the financial investment sector's KYC procedures. However, these KYC procedures aid investment organizations in better understanding client needs rather than serving as an AML endeavor. Users can frequently open an account on cryptocurrency exchanges before the KYC procedure is finished. These unverified accounts, however, only offer a few features. The obvious benefit of KYC procedures is that they reduce and prevent financial fraud and money laundering. Even if it complicates and takes more time, notably for the banking sector and its clients, the advantages probably exceed the drawbacks. Nevertheless, using established procedures would probably speed up the procedure. The usage of digital currency for illegal operations has drawn a lot of attention in the world of cryptocurrencies. It is undoubtedly good for cryptocurrencies and its reputation to reduce that. Although it takes time, compliance should always be rewarded. However, customers shouldn't submit sensitive personal data without first verifying that the business has put in place the required security measures to protect the information.