What is Know Your Customer (KYC)?
"Know Your Customer" (KYC) means understanding and verifying a customer's identity. Personal identification refers to the process of confirming a person's identity, typically through the use of documents such as an ID card, passport, or driver's license.
KYC verification is a fundamental component of modern banking security. As regulated financial institutions, banks are legally required to conduct these checks before establishing new business relationships with customers.
Why is KYC required?
Financial institutions must conduct an independent identity verification to prevent fraud and ensure compliance with anti-money laundering regulations. This verification process ensures security standards and protects the integrity of banking services.
The verification process
The KYC procedure includes document authenticity checks and video verification by trained personnel. This is an essential security measure to protect customers and financial institutions.
At Qonto, KYC in the German market is conducted together with our partner IDNow via video identification.
You will receive your video identification invitation from us. You only need a stable internet connection, a device with a camera, and your ID.
Quick, simple, and secure. The video identification is usually completed in 5-10 minutes.
Find here more information about accepted identity documents at Qonto.
When do I as a customer need to complete a new KYC check?
A renewed identity verification (Re-KYC) is required when:
- Opening an account with a new bank
- Changing financial service providers
- Establishing a new business relationship with a regulated financial institution
- Routine verification due to regulatory requirements
Each financial institution must independently verify the identity of its customers, regardless of previous verifications by other banks.
Legal framework
European banking regulations require thorough customer due diligence before establishing a business relationship. These requirements are based on EU anti-money laundering directives and are implemented through national legislation. The process ensures compliance with anti-money laundering regulations and meets the security standards required by financial supervisory authorities.
For more information about our legal requirements, please visit the Qonto Germany Legal Center