The Know-Your-Customers Principle in Financial Institutions Anti-money Laundering Measures-and how to Improve this Principle in the Domestic Anti-money Laundering System

As an international crime,money laundering has drawn great concerns.Financial institutions play a very important role in anti-money laundering action.The principle of know your customers(shortened as KYC) is the key point for financial institutions' to enforce anti-money laundering measures.The status and meaning of KYC principle are discussed in this paper,and its applicable extent and scope are expounded.Through comparing with the KFC principles in some foreign countries,shortcomings and improving measures about domestic anti-money laundering system are also discussed.