The acronym "KYC" stands for Know Your Customer, a process used in financial services to verify customers' identities and assess their risk. KYC protocols help institutions comply with anti-money laundering (AML) regulations and protect against fraud. By collecting and analyzing customer data, banks and financial institutions can better understand their clientele, prevent illicit activities, and maintain the integrity of the financial system. KYC processes are fundamental to building trust and ensuring effective risk management in the financial sector.