KYC, or Know Your Customer, is a process used by businesses, especially in the financial sector, to verify the identity of their clients. This helps prevent fraud, money laundering, and other illegal activities. By collecting information such as names, addresses, and identification documents, companies can ensure they are dealing with legitimate customers. The KYC process is essential for maintaining trust and security in transactions. It not only protects the business but also safeguards customers by ensuring that their personal information is handled responsibly. Overall, KYC is a crucial step in promoting a safe and transparent financial environment.