What is 'Know Your Customer (KYC)'? Definition & meaning

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

More terms

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Yield

Income from an investment as a percentage of its current price.

Volatility

A measure of how much the prices of an asset or index vary over time.

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Know Your Customer (KYC)