Definition
Know Your Customer (KYC) is the practical process of establishing and verifying who a customer is — collecting identity documents or electronic identity evidence, screening the customer, and understanding what they want from the relationship. KYC is the identification core of the wider legal duty of customer due diligence (CDD) that Irish AML law imposes on designated persons.
What is KYC?
KYC — Know Your Customer — is the everyday name for the identity end of AML compliance: gathering evidence of who a customer actually is, verifying that evidence against reliable and independent sources, and understanding the purpose of the relationship before any work begins. For individuals that typically means photographic identity and proof of address (or electronic identity verification); for companies it extends into KYB — Know Your Business — with company records, ownership structures and beneficial-owner identification.
Is KYC the same as CDD?
Not quite, and the distinction matters when reading legislation. Irish law (the CJA 2010) and the EU AMLR never use the term “KYC” — the legal obligation is customer due diligence, which covers identification and verification but also beneficial-ownership checks, understanding the purpose of the relationship, and ongoing monitoring. KYC is best understood as the identification and verification core of CDD: every KYC check is part of CDD, but a compliant CDD file needs more than a passport copy.
Why does KYC matter for Irish firms?
Because it is where compliance meets client experience. A slow, paper-based KYC process delays engagements and irritates clients; a weak one leaves the firm exposed at inspection by the Central Bank, the Law Society, the accountancy bodies, the PSRA or the AMLCU. Under the AMLR from 10 July 2027, the pressure increases: CDD triggers at €10,000 for occasional transactions, and the regulation explicitly recognises eIDAS-aligned electronic identification — with the EU Digital Identity Wallet on the horizon — as a valid way to verify identity. Digital KYC moves from convenience to the expected norm.
What does good KYC look like?
Risk-based, documented and repeatable: verify identity electronically where possible, screen against sanctions and PEP lists at onboarding and periodically, capture beneficial owners for entities, and diarise refresh dates so files never quietly go stale.
CompliDesk gives Irish firms bank-grade electronic KYC with screening and audit-ready records in one workflow — see plans and pricing.
Related terms
General information, not legal advice. This definition provides general information about EU and Irish anti-money-laundering requirements. Regulatory detail is still evolving through 2026–27 — verify against primary sources (EUR-Lex, AMLA, and your sector’s Irish supervisor) and seek qualified advice before acting.