KYC Regulations, or Know Your Customer regulations, are guidelines that financial institutions and businesses must follow to verify the identity of their clients. These rules help prevent fraud, money laundering, and other illegal activities by ensuring that companies know who they are dealing with. The process typically involves collecting personal information, such as name, address, and identification documents. By implementing KYC Regulations, organizations can create a safer financial environment and comply with legal requirements, ultimately protecting both themselves and their customers.