KYC and AML
KYC is customer identity verification; AML is the broader set of anti-money-laundering procedures that KYC is part of.
KYC (Know Your Customer) is the process of verifying a customer's identity when registering on an exchange — this usually requires uploading a photo of an ID document and a selfie, and sometimes proof of address as well.
AML (Anti-Money Laundering) is the broader set of rules and procedures that KYC is one part of — it also includes monitoring transactions for suspicious activity and reporting it to the relevant authorities. AML requirements are set at the country or regional-bloc level (e.g. under MiCA in the EU) rather than by one single global regulator — see VASP and the Travel Rule for the international standards most national AML regimes are built on.
Related terms
VASP (Virtual Asset Service Provider)
A term used by FATF for businesses providing virtual-asset services — exchanges, custodial wallets, and similar — subject to AML rules worldwide.
Travel Rule
A FATF anti-money-laundering rule requiring exchanges to share sender and recipient information on crypto transfers above a set threshold.