What is KYC (Know Your Customer) and why do we use it?

When setting up your Nuri account, you’ll encounter a video identification call, known as KYC, or Know-Your-Customer. KYC is a process that banks and other financial institutions use to gather identifying data and contact information from current and potential customers. 

Its purpose is to prevent fraud, money laundering, counter-terrorism financing, suspicious activity and adherence to economic sanctions.

KYC is now a legal requirement for all financial institutions when customers open accounts. 

KYC allows financial institutions to make the services they provide safer and more transparent. Because banking and finance are connected to all other industries, most businesses, partners and platforms also have to adhere to financial KYC standards.

Why do I need to do KYC?

The main goal of KYC is to prevent banks from being used for illicit activities and to protect authentic customers. KYC helps businesses to understand their customers and manage their risks prudently.

KYC helps financial institutions to make sure that potential customers are who they say they are and also plays an important role in managing customer risk. Customer risk is a way to make sure that prospective clients meet the institution’s standards for using their services. 

These risk factors can include the customer’s financial history, country of residence and the industry they work in. These standards not only make it harder for criminals to launder their money but also create a safer environment for customers and help to make the wider financial services industry more robust.

At Nuri, we need to make sure we know who our customers are to protect them, as well as to stop fraudulent transactions in their tracks. But KYC doesn’t just happen when you open your account. It’s actually an ongoing process throughout your relationship with us. If something changes or seems unusual, like a sudden increase in transfers or international transactions, we will check in to keep your account safe.

What information is collected during KYC at Nuri?

Finance is safer than ever before. Technology removes opportunities for human error and makes it easier for people to use financial services safely. Financial institutions also do a lot more to understand who their customers are and have better tools to spot illegal activity. This process is called Know Your Customer, known as KYC. 

Nuri collects proof of identification (ID) and proof of address (POA) during KYC. We’ll need to see a valid passport or ID card that contains the required security features, so make sure you have this ready during the call. Our partner service will also take a photo of you. In order to open an account with Nuri, you must be a resident of the EU or EEA.

Reasons why KYC is important:

  • Establishes if the customer is who they really say they are.
  • Helps us stop online fraudulent transactions before they’ve even started.
  • Allows us to comply with regulatory and legal requirements.
  • It helps the government to determine crimes like money laundering, terror financing, fraud, scams, etc. by retrieving customer information from banks.
  • Helps us for smoother customer support.