Know Your Customer verification

Know Your Customer verification in Defense and Government Contracting sits at the intersection of two distinct regulatory authorities: the U.S. Financial Crimes Enforcement Network, which sets beneficial ownership and customer due diligence standards under the Corporate Transparency Act framework, and the Defense Contract Audit Agency, which scrutinizes contractor identity and ownership disclosures during cost and pricing reviews. Contractors holding or pursuing federal awards are mapping KYC obligations across both tracks simultaneously, particularly as FinCEN's beneficial ownership reporting rules tighten disclosure requirements for entities that flow through defense supply chains.