KYB (Know Your Business)

KYB is the business counterpart of KYC. Typical checks cover the company's registration details and status, taken from a registry such as Companies House in the UK; its directors; and its ultimate beneficial owners, the individuals who ultimately own or control it. The UK's Money Laundering Regulations 2017 treat anyone who owns or controls more than 25% of the shares or voting rights of a company as a beneficial owner, and those people then go through KYC checks themselves. Providers also screen the business and its owners against sanctions and adverse media.

For payment providers, KYB also covers the business model: what is sold, where customers are, expected volumes and average transaction size, the website and its terms, refund and delivery policies, licences required for sectors such as gambling or financial services, and processing history. FATF standards make identifying beneficial owners part of customer due diligence, and card scheme rules add their own merchant screening requirements, so KYB for payment acceptance looks closely at how the business operates as well as who owns it.

KYB continues after onboarding. Providers re-check ownership changes, compare transaction patterns with what was declared and may ask for updated documents. Complex structures, such as trusts, holding companies in several jurisdictions or nominee shareholders, take longer to clear, so having ownership charts and certified documents ready speeds up onboarding.