Know Your Business (KYB)

A KYB check typically involves gathering information about a business’s registration, ownership structure, beneficial owners (UBOs), company directors, and financial history. Depending on jurisdiction, it may also include validating licenses, tax ID numbers, or adverse media screenings.

KYB compliance means an organization has fulfilled regulatory requirements for verifying and monitoring the businesses it works with. This often involves aligning with anti-money laundering (AML) laws, such as the EU’s AMLD directives or the U.S. Bank Secrecy Act, and maintaining updated records as part of ongoing due diligence.

While KYC focuses on verifying the identity of individual customers, KYB targets the legitimacy of business entities. KYB often includes KYC on the individuals behind a company (e.g., UBOs), making the two processes complementary but distinct. KYB is especially important in B2B contexts or when working with fintech, crypto, and payment platforms.