Glossary

What is KYC?

What is KYC? KYC ("Know Your Customer") is the identity-verification process a financial institution runs to confirm who you are before opening an account and on an ongoing basis. It is required by anti-money-laundering law (the BSA in the US), not an optional step.

What KYC typically involves

Identity verification: legal name, date of birth, residential address, and an identification number (SSN, ITIN, or government ID).
Document check: a photo of a government ID and sometimes a selfie or liveness check.
Screening: checks against watchlists and sanctions lists.
Ongoing monitoring: periodic refresh and re-verification as rules require.

Why KYC can fail or take longer

A mismatch between the name on your ID and the name on your account, an unreadable document photo, a recently moved address, or a watchlist similarity can all slow or block verification. This is a legal-compliance outcome, not a judgment of you personally. Fixing the underlying record (correcting a name, retaking the photo) usually resolves it.

KYC is not a credit check

KYC verifies identity; it is not a credit decision and typically does not pull a credit score. A "soft" identity check is different from a credit application. APR applies to borrowing, which is a separate product type.

How this relates to Kronos

At Kronos onboarding, identity is verified to satisfy the partner bank's KYC obligations. KronosPay LLC is a financial technology company, not a bank. The identity check is required so the regulated partner can lawfully open the account. Read the bank-status page.

Primary sources

General educational information only; not legal advice.