# Aml Kyc Basics

> Apply AML/KYC fundamentals — customer due diligence, monitoring, suspicious activity escalation, and recordkeeping — for financial crime compliance. Use when designing onboarding controls, transaction monitoring concepts, or AML program components in financial services.

- Skill: `itsual/aml-kyc-basics` (Agent Skill)
- Install (CLI): `npx skillmds@latest add itsual/aml-kyc-basics`
- Raw SKILL.md: https://api.skillmd.com/api/skills/itsual/aml-kyc-basics/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: itsual (https://skillmd.com/u/itsual)
- Updated: 2026-09-21
- Page: https://skillmd.com/skills/itsual/aml-kyc-basics

---


# AML / KYC Basics

## Overview

Anti-money laundering (AML) and know-your-customer (KYC) programs prevent the financial system from being used for illicit finance. They combine identification, risk rating, ongoing monitoring, and reporting duties.

## When to Use

- Customer onboarding and CDD/EDD design
- Periodic KYC refresh programs
- Transaction monitoring alert concepts
- SAR/STR escalation awareness
- AML training and culture support

## Core Practices

- Identify and verify customers (and beneficial owners where required)
- Risk-rate customers and apply proportionate due diligence
- Monitor transactions and behavior for unusual patterns
- Escalate and report suspicious activity through defined channels
- Screen against sanctions and prohibited parties as required
- Retain records for mandated periods

## Principles

- Risk-based approach — not identical effort for every customer
- Tip-offs and tipping-off prohibitions matter operationally
- Quality of KYC data drives monitoring effectiveness
- Compliance and business share responsibility for outcomes

## Verification

- [ ] CDD/EDD requirements are defined by risk tier
- [ ] Escalation path for suspicious activity is clear
- [ ] Sanctions screening coverage is defined and owned