One of the main reasons why KYC is important is that it is to ensure that financial bodies are not being used to carry out money laundering activities of any kind. Money laundering typically happens unbeknownst to the financial authority whose platform is being used for such activities. With KYC online verification and offline KYC authentication in place, banks can catch any potential money laundering rings. Another reason why KYC is important is that there are many non-individual customers that use financial services like trading, mutual fund investment, and more. With KYC, banks, and financial institutions, and brokerages, among others have the right to verify the legal status of that entity. This can include cross-checking their operating address and verifying the identities of their beneficial owners and authorized signatories. In addition to learning whether these companies are authentic, the KYC process also requires that one detail the nature of their employment as well as the business carried out by the customer. This information is also useful in verifying how authentic the individual and/or company is. Before all this information is provided, the KYC verification mandates that one cannot open a bank account, trading account, demat account, or any of the like.