Difference between KYC and AML

Question

Accepted Answer

KYC is the process of verifying the identity of a customer while AML is the process of preventing money laundering.

KYC is focused on identifying and verifying the identity of a customer
AML is focused on preventing money laundering and terrorist financing
KYC is a prerequisite for AML
KYC involves collecting and verifying customer information such as name, address, and identification documents
AML involves monitoring customer transactions and identifying suspicious activity
KYC is a one-time process while AML is an ongoing process
Examples of KYC include verifying a customer's identity before opening a bank account or issuing a credit card
Examples of AML include monitoring transactions for unusual activity or conducting enhanced due diligence on high-risk customers

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