FinTech
What is KYC/AML and how do you implement it in an app?
KYC (Know Your Customer) and AML (Anti-Money Laundering) are regulatory requirements that verify user identity and screen for financial crime before granting access to financial services. Implement KYC by integrating an identity verification provider (Jumio, Onfido, Persona) that handles document checks, liveness detection, and sanctions screening via API. AML adds ongoing transaction monitoring for suspicious patterns.
Key Considerations
- Use a specialized provider rather than building verification in-house — they handle document recognition across 200+ countries and fraud detection
- Tiered KYC reduces friction: require minimal info for low-value actions, escalate to full ID verification for higher limits
- Ongoing monitoring (transaction screening, PEP/sanctions list checks) is required, not just one-time onboarding verification
- Store KYC data with strict access controls and retention policies — this is sensitive PII with regulatory retention requirements
- Regulatory requirements vary by jurisdiction and license type — consult compliance counsel before designing your KYC flow