The abbreviation “KYC” stands for “know your customer”. This obligation to “know your customer” is contained in Section 10 para. 1 nos. 1 and 2 of the German Anti-Money Laundering Act (AMLA).

Pursuant to this, the obliged party has to identify its contractual partner and, if applicable, any person acting on its behalf as well as clarify whether the contractual partner is acting on behalf of a beneficial owner. If this is the case, the beneficial owner also needs to be identified. The obligation to identify the contractual partner, the person acting on their behalf as well as any beneficial owners is part of the general customer due diligence obligations contained in Section 10 para. 1 AMLA, which must be fulfilled, for example, before a business relationship is established with a future customer.