Who uses it: Bankers, bank regulators and law enforcement officials
What it means: A set of requirements designed to identify and prevent money laundering.
How you can use it: When answering questions that seem a little invasive.
Don't think that "knowing their customers" means that your bank will actually know your name when you walk in the door. It just means that they're required by law to keep track of where you live and what types of balances you typically carry in your accounts. If you suddenly made a $25,000 deposit that was unconnected to anything they knew about (i.e., the sale of a house or change in your marital status), they're required to notice.
I'm crashing on deadlines this morning, and don't have much time to post... but I do want to congratulate the Lechner family on their happy news: yesterday, they got the long-awaited phone call announcing their new son, born in Ethiopia six months ago. The happiest days are the days when babies come, and Dizzy and I can't wait to meet Grace's little brother.