Barriers to Effective Compliance with Know Your Customer Principle in Small Public Accounting Firms: A Qualitative Study

This study aims to analyze internal and external barriers that influence the effectiveness of compliance with Know Your Customer (KYC) principles in small-scale public accounting firms. The study uses a qualitative approach through a review of literature, regulations, and empirical findings related to KYC implementation. The results of the study indicate that internal barriers include limited human resources, low regulatory understanding, and minimal technological support, while external barriers include regulatory complexity, client resistance, and competitive pressures. The interaction of these two factors causes KYC implementation to tend to be administrative and not fully meet regulatory standards. This study emphasizes the need for more targeted regulatory, technical, and educational support to improve the effectiveness of KYC implementation and strengthen financial crime prevention in Indonesia.