What Is KYB?
KYB checks verify that a business legally exists and help assess its ownership, legitimacy, and exposure to financial crime risks. In many jurisdictions, regulated financial institutions and payment service providers must perform business due diligence as part of their AML/CFT obligations.
How the KYB Process Works
A typical KYB review verifies company registration documents, legal form and address, ownership structure, and the identity of directors and ultimate beneficial owners (UBOs). The provider also screens the company and relevant individuals against sanctions and other compliance watchlists and assesses the business's risk profile, including industry-related risks.
KYB vs KYC
KYC (Know Your Customer) verifies an individual; KYB verifies a company - including the individuals behind it. Merchant onboarding usually involves both: KYB for the legal entity and identity checks for relevant individuals, such as UBOs and those who control the business.
Why KYB Matters for Merchants
KYB is a key part of merchant onboarding. Accurate registration documents and a clear ownership structure speed up onboarding, while gaps cause delays. Modern payment platforms streamline the step with digital document collection and automated checks.
