KYC (Know Your Customer) is not a regulatory term in the US, lacking an agreed upon definition, but it generally refers to understanding the purpose and nature of a customer in relation to their accounts. AML regulations require financial institutions to apply a risk-based approach, grasping inherent risks associated with products, services, geographies, and customers. Companies use various processes such as CIP (customer identification program), CDD (customer due diligence), EDD (enhanced due diligence), and ODD (ongoing due diligence) to verify identity and reduce fraud, which are crucial for a strong customer management process. Identity verification processes are a necessary building block for compliance with financial regulations, preventing fraud, and increasing user trust and safety, applicable to various industries beyond financial services. A risk-based approach to customer management is essential for businesses, including those in real estate technology, online retailers, marketplaces, and social media platforms.