KYB (Know Your Business)

Know Your Business (KYB) is the process financial institutions and other organizations use to verify and assess the identity, legitimacy, and risk profile of business customers, partners, or suppliers. The goal is to meet regulatory requirements and maintain a secure, transparent business environment.

Example

When a company applies for a business loan, the financial institution may run a KYB check to confirm the company's registration details, ownership structure, directors, and financial history. This can include reviewing official documents, checking databases, and assessing the company's risk profile for potential fraud, money laundering, or other illicit activity. By carrying out KYB checks, financial institutions can reduce risk, maintain regulatory compliance, and support a more trustworthy business ecosystem.