Investor Terms

Know Your Customer

Definition

What is Know Your Customer?

The identity and due-diligence checks a financial institution performs before serving an investor.

Example in practice

A manager requests identification, address, bank details, and source-of-funds information before activating an account.

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An assessment of an investor's ability and willingness to accept investment losses and uncertainty.

The expected period before invested money will be needed.

The ease and speed with which an investment can be converted into cash without a major price concession.

Tax deducted at source from specified income payments before the recipient receives the balance.

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