Glossary term · K

KYC (Know Your Customer)

Definition

KYC (Know Your Customer) refers to the set of identity verification procedures that a company applies to its customers before entering into a business relationship. Historically imposed on banks by anti-money laundering directives, KYC has extended to electronic signature operations with high stakes: account opening, credit, insurance, notarial deeds. Three pillars: verification of identity documents (OCR and fraud detection on the security features of a card or passport), liveness control (proof that the person is real and present, not a photo or deepfake), and cross-checking information with reference databases. Link with signature level: the more sensitive the deed, the stronger the KYC — a simple signature may require none, while the eIDAS regulation requires face-to-face or equivalent remote identity verification (video KYC) before issuing a qualified signature (QES) certificate. KYC and AML/CFT: KYC is the entry stage of the relationship; ongoing transaction monitoring (AML/CFT) continues afterward. Why it matters: robust KYC is what allows a remote signature to have the same legal value as a signature witnessed in person, by linking the signing key to a verified human.

Frequently asked questions

What does KYC mean?

KYC (Know Your Customer) refers to all the checks a financial institution must carry out before entering into a business relationship: customer identity, beneficial owners, origin of funds, risk profile. It is an obligation of the AML/CFT framework (anti-money laundering and countering the financing of terrorism).

What is the role of the Banque de France and the ACPR in KYC?

The Banque de France does not perform KYC on behalf of banks: the ACPR (Autorité de contrôle prudentiel et de résolution), attached to the Banque de France, supervises the compliance of banks' and insurers' KYC and AML frameworks and sanctions breaches. The Banque de France also manages files consulted during onboarding (FICP, FCC), and TRACFIN receives suspicious-activity reports.

Which documents are requested during a KYC check?

For an individual: a valid ID document, proof of address, sometimes proof of the origin of funds. For a company: certificate of incorporation, articles of association, identity of directors and beneficial owners. These files are now collected and signed remotely, with identity verification and electronic signature of the onboarding file.

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