Overview#

Know Your Customer (KYC) is the process of a business identifying and verifying the identity of its clients.

Customer Identification Program (CIP)#

In the United States, Know Your Customer is more formally known as Customer Identification Program

Inefficient & Painful Know Your Customer#

Recent estimates indicate that in the United States over $40B USD is spent complying with Know Your Customer regulation each year, in addition to the trillions of hours of associated time costs. This cost is necessarily high because relying parties cannot quickly and easily access up-to-date Identifier data, perform Validation the data, or screen it to satisfy their Regulatory Agencies requirements. Therefore, relying parties must send new requests to the identity owner, treating every identity owner as a ‘blank canvas’ and forcing them through the fully robust Know Your Customer process.

The time and effort expended by one relying parties to perform validation checks cannot be reused or recycled and is not leveraged in future requests. If the identity owner decides to change Service Providers, these same checks need to be completed by the new Relying Party. The identity data is not “ported” to the new service provider and so ends up being held by multiple providers, many of whom hold redundant, yet still highly Sensitive Data, for individuals who are no longer their clients or customers.

More Information#

There might be more information for this subject on one of the following:

• Anti-Money Laundering
• Centralized Exchange
• Customer Identification Program
• Electronic Identification Authentication and trust Services
• Electronic Identity Verification
• Financial Industry Regulatory Authority Inc
• Government Identity
• Identity Proofing
• Identity Verification Service
• KYC
• OpenID Connect for Identity Assurance