KYB: Know Your Business

Know Your Business (KYB) is the process of verifying the identity, legitimacy, and risk profile of business customers before and during a commercial relationship.

What KYB Includes

Entity verification: Confirm the business exists and is in good standing

Beneficial ownership: Identify natural persons who own or control the business

Risk screening: Check against sanctions, PEP, and adverse media lists

Due diligence: Assess risk level and apply appropriate scrutiny

Ongoing monitoring: Maintain current knowledge throughout the relationship

KYB vs. KYC

Subject

• KYB: Business entities
• KYC: Individuals

Ownership

• KYB: Must identify UBOs
• KYC: N/A

Data sources

• KYB: Registries, filings, commercial data
• KYC: ID documents, credit bureaus

Complexity

• KYB: Higher (structures, layers)
• KYC: Lower (single person)

Why KYB Matters

• Regulatory compliance: Required under BSA, CDD Rule, CTA
• Fraud prevention: Verify businesses are real before transacting
• Risk management: Understand who you're doing business with
• AML/CFT: Prevent money laundering and terrorist financing

For comprehensive coverage, see: What is KYB?

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Related: KYC | CDD | UBO | Entity Verification