# Know Your Customer (KYC)

*Last updated: 2026-06-26*

> Freight forwarders, customs brokers, and logistics operators are legally required to identify and verify their business partners and customers through Know Your Customer (KYC)—a core compliance mechanism against money laundering, fraud, and terrorist financing.

Freight forwarders, customs brokers, and logistics operators are legally required to identify and verify their business partners and customers through Know Your Customer (KYC)—a core compliance mechanism against money laundering, fraud, and terrorist financing. The process covers company registration, beneficial ownership, business activities, sources of funds, and any history of sanctions violations or criminal proceedings. Risk assessment is central: the customer's industry, jurisdiction, and transaction patterns are evaluated for potential exposure. KYC is an ongoing obligation, not a one-time check—monitoring must intensify whenever business relationships or transaction volumes change materially. Failure to comply exposes firms to regulatory fines and serious reputational harm. Unlike Enhanced Due Diligence (EDD), standard KYC applies across the general customer portfolio; EDD is triggered only where the risk profile demands a deeper level of scrutiny.

**Source:** [https://www.investopedia.com/terms/k/knowyourcustomer.asp](https://www.investopedia.com/terms/k/knowyourcustomer.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Know Your Customer (KYC) |
| Language | EN |
| Word count | 129 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/k/knowyourcustomer.asp |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/know-your-customer-kyc](https://www.freight-academy.com/en/glossary/know-your-customer-kyc)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/know-your-customer-kyc](https://www.freight-academy.com/api/md/glossary/en/know-your-customer-kyc)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/know-your-customer-kyc/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/know-your-customer-kyc/llm-summary?lang=en)*