KYC processes are also employed by companies of all sizes for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant and are actually who they claim to be.
Banks, insurers, export creditors, and other financial institutions are increasingly required to make sure that customers provide detailed due-diligence information.
[5] KYCC is a derivative of the standard KYC process that arose because of the growing risk of fraud obscured by second-tier business relationships (e.g. a customer's supplier).
Also, the business is screened against blacklists and grey lists to check if it was involved in any sort of criminal activity such as money laundering, terrorist financing, corruption, etc.
According to the European Union's 5th AML directive,[6] KYB is required for the following AML-regulated entities: Electronic know your customer (eKYC) involves the use of internet or digital means of identity verification.