Compliance and identity glossary
The key terms of KYC, AML, and identity verification, explained clearly.
KYC (Know Your Customer)
The process of verifying a customer's identity before and during the business relationship.
KYB (Know Your Business)
Verification of a company's identity and its ultimate beneficial owners.
AML (Anti-Money Laundering)
A set of controls designed to prevent money laundering and the financing of terrorism.
PEP (Politically Exposed Person)
An individual holding a prominent public function, implying higher risk and enhanced due diligence.
Liveness
A proof-of-life check confirming that the person in front of the camera is real and present.
Face match
Biometric comparison between the face in a selfie and the photo on an identity document.
OCR
Optical character recognition that extracts data from an identity document.
Adverse media
A search for negative news linking a person or company to crimes or reputational risk.
Sanctions (SDN/OFAC)
Lists of persons and entities with whom it is prohibited to transact under international regulation.
Travel Rule
A regulation requiring the sharing of originator and beneficiary data in crypto transfers above a threshold.
EDD (Enhanced Due Diligence)
Additional controls applied to higher-risk customers or transactions.
SAR/STR
Suspicious activity report filed with the regulator when unusual activity is detected.
Verifiable Credential (VC)
A cryptographically verifiable digital proof of the identity or attributes of a person or AI agent.
Ultimate Beneficial Owner (UBO)
The natural person who ultimately owns or controls a company.