What is essential for establishing the legitimacy of customers as part of KYC procedures?

Verification of identity is fundamental in establishing the legitimacy of customers during Know Your Customer (KYC) procedures. This process involves confirming the individual’s identity through reliable and independent sources, such as government-issued identification documents, which may include passports, driver's licenses, or national ID cards. This step is crucial because it helps to prevent fraud, identity theft, and the potential for money laundering activities. By ensuring that the customer is who they claim to be, the financial institution can establish a trustworthy relationship and mitigate risks associated with engaging with illicit actors.

The other options provide supportive measures but do not directly establish legitimacy as robustly as verification of identity. Personal interviews can add depth to understanding a customer but do not serve as a primary form of verification. Analytical reviews and data mining may complement the KYC process by identifying trends or patterns in customer behavior, but they do not replace the need for solid identity verification to ensure compliance with regulations.