KYC means, "Know Your Customer," is a process used by businesses, particularly financial institutions, to verify the identity of their clients and assess potential risks associated with their transactions, primarily to prevent financial crimes like money laundering and terrorist financing. 

Here's a more detailed explanation:

Purpose:
The primary goal of KYC is to prevent financial institutions from being used by criminals to launder money or finance illegal activities. 

How it works:
KYC involves collecting and verifying information about customers, including their identity, address, and financial status. 

Why it's important:
Combating Financial Crimes: KYC measures help detect and prevent money laundering, terrorist financing, and other financial crimes. 

Protecting Financial Institutions: By verifying customer identities and monitoring transactions, KYC helps protect financial institutions from reputational damage and financial losses. 

Ensuring Compliance: KYC is a regulatory requirement in many jurisdictions, and financial institutions must comply with these regulations to avoid penalties. 

Improving Customer Service: KYC can also help financial institutions better understand their customers and their needs, allowing them to provide more personalized and relevant services.