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

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Accounting standards

The rules a company follows when preparing financial statements.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Gilt

What is a gilt?

UK Treasury bill

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

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Interest Rate

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

Collective investment scheme

Learn what's a collective investment scheme

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Know Your Customer (KYC)