KYB (Know Your Business)

Verification process for companies and legal entities to prevent fraud and comply with regulations.

What is it? - Dummies

It's like reviewing the papers of a company to find out if it's real, who runs it and if everything is in order before doing business with it.

What is it? - PRO

KYB (Know Your Business) is a mandatory verification process carried out by financial institutions, fintechs or service providers (including blockchain) to confirm the identity, legal structure, final beneficiaries and legitimacy of a company. It is an extension of KYC, applied to legal entities, essential to comply with regulations such as AML and avoid associations with fictitious companies or companies involved in financial crimes.

Key points

Verify the structure and legality of a company.

A critical part of regulatory compliance for B2B.

Sales and disadvantages

Advantages

It prevents corporate fraud.

It increases security in B2B relationships.

It facilitates transparency in the business network.

Required to operate legally in regulated sectors.

Disadvantages

It can be slow and complex in multilevel structures.

Requires collection of sensitive documentation.

It adds friction in company onboarding processes.

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