KYCn

KYCn is a proposed framework for interoperable Know Your Customer processes among financial institutions and other regulated entities. It seeks to streamline customer onboarding and ongoing due diligence by enabling controlled, consent-based sharing of verified identity data and risk assessments while preserving compliance with KYC and AML regulations.

Origins and scope: KYCn has emerged from industry consortia and regulatory discussions aiming to reduce duplicative checks across banks, payment providers, and fintechs. It is not a universal standard but a reference model or architecture intended to guide interoperable data exchange, privacy by design, and data minimization.

Architecture and data model: The framework envisages a common set of data elements (identity attributes, verification attestations, risk signals) along with mechanisms for trusted exchange. It supports privacy-preserving techniques such as verifiable credentials and selective disclosure, along with consent management, access controls, and auditable logs.

Governance and regulation: KYCn would be governed by a multi-stakeholder body including financial institutions, regulators, and consumer representatives. Implementation emphasizes alignment with data protection laws (such as GDPR), cross-border transfer rules, and AML/CFT requirements, with customers able to grant and revoke consent for data sharing.

Adoption and implications: Pilots and implementations have appeared in some regional ecosystems. Potential benefits include reduced redundant checks, faster onboarding, and improved data quality, while challenges include governance complexity, trust in the data, ensuring data quality, and balancing privacy with compliance.