KYC (Know Your Customer) in Freight Forwarding

Know Your Customer (KYC) is a regulatory and operational process in goods forwarding that verifies clients’ identities, legitimacy, and risk profile before engaging in business operations. KYC measures, which began in financial services, are now required in global logistics for the prevention of fraud, money laundering, the financing of terrorism, and trade compliance issues. Forwarders are expected to collect and check critical customer information, such as legal business names, registration numbers, ownership structure, and sanction screenings, particularly when processing international shipments and cross-border transactions.

KYC processes are incorporated into CargoWise’s customer onboarding and compliance modules, automating and streamlining data gathering, risk assessment, and paperwork monitoring. These systems enable freight forwarders to keep auditable KYC records, limit account access for high-risk clients, and receive alerts when customer profiles need to be updated or reviewed. By incorporating KYC into operational processes, logistics firms improve regulatory compliance, reduce vulnerability to illegal trade practices, and build confidence with both legitimate clients and regulatory agencies.