GLOSSARY
KYB (Know Your Business)
KYB is the due diligence process for verifying a corporate entity's identity, ownership structure, and risk profile before onboarding.
Know Your Business (KYB) is the corporate counterpart to KYC, requiring verification of a legal entity's registration, beneficial ownership, and sanctions status before establishing a business relationship.
Why it matters
In cross-border B2B trade, KYB sits at the front gate of every onboarding workflow. FATF Recommendation 24 mandates that countries ensure competent authorities can access beneficial ownership information, and the EU's 6AMLD requires member states to maintain central UBO registers. For operators, this means collecting company registration documents, identifying ultimate beneficial owners holding 25% or more, running sanctions and adverse-media screens, and documenting the results.
Incomplete KYB creates downstream risk: rejected payments, frozen shipments, and regulatory scrutiny. Automating registry pulls and screening checks shortens onboarding from weeks to days while keeping compliance defensible.