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

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

Securities

Bonds and stocks.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.

Diversification

An investment strategy in which money is put into a variety assets.

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Know Your Customer (KYC)