Know Your Supplier (KYS)

Know Your Supplier (KYS) is a due diligence measure that is designed to verify supplier reliability by assessing and mitigating risks linked to potential business relationships with third-party suppliers. The KYS process is important because it helps organizations prevent fraud and reputational harm. By incorporating supplier due diligence methods, businesses identify vulnerabilities in their supply chain, ensuring proper financial crime prevention. 

Know Your Supplier often involves conducting thorough investigations and reviews to ensure that suppliers meet specific standards of reliability all in line with regulatory compliance. By assessing and screening third-party partners, including various suppliers, businesses ensure data accuracy and other aspects, like guaranteeing proper production standards for compliance with environmental and business integrity criteria.

Frequently asked questions


What is Supplier KYC?


Supplier KYC is a similar term to the standard Know Your Customer (KYC) process. However, it’s aimed at supplier due diligence, meaning that its main goal is to verify third-party suppliers. So, KYC confirms customer identity, while KYS verifies suppliers’ authenticity, reliability, and compliance with standards.

Using KYS or supplier KYC in your company reduces the risk of fraud and helps maintain compliance with regulations. Consequently, both Know Your Supplier and its counterpart, Know KYC, are essential components of a broader Anti-Money Laundering (AML) compliance program.


Why is Supplier Due Diligence Important?


What Steps Make Up a Successful KYS Process?


How Does Know Your Supplier Help to Prevent Financial Crime?


How Can You Improve Supplier Due Diligence?


What are the Key Benefits of the KYS Process?


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