Know your customer (KYC) and anti-money laundering (AML) processes are designed to ensure that customers are who they say they are and prevent criminals from depositing or transferring funds that result from illicit activity. This critical function helps banks evaluate customer risk and avoid compliance mistakes.

Failure to comply with AML regulations can have significant financial consequences for banks. As global regulators put financial institutions under greater scrutiny in an effort to stop the illegal flow of money, regulating authorities are stepping up enforcement.