What is KYB (Know Your Business)?
KYB — Know Your Business — is the process of verifying that a business customer is real, legitimate, and who it claims to be before you let it move money. It's the corporate equivalent of KYC, and it's a regulatory requirement for any payments business.
Why KYB exists
Anti-money-laundering (AML) rules require regulated payment and crypto businesses to know exactly who their customers are — not just at sign-up, but on an ongoing basis. For a company customer, “knowing” it means verifying three things: that the business is real and legally registered, who ultimately owns and controls it, and whether the business or its owners present a financial-crime risk.
Skipping or weakening any of these is how illicit funds enter the financial system — which is why KYB is a legal obligation, not a nicety.
What KYB actually checks
- Entity verification — the company exists, is active, and its registration details (name, number, registered address, directors) match an authoritative source.
- Ownership & control (UBOs) — the natural persons who ultimately own or control the business are identified and verified, even through holding companies or trusts.
- Screening — the business and its UBOs/directors are checked against sanctions lists, politically-exposed-person (PEP) databases and adverse-media sources.
- Risk rating — the findings produce a risk score that sets how much ongoing monitoring and due diligence the relationship needs.
KYB vs KYC
| KYB | KYC | |
|---|---|---|
| Subject | A business entity | An individual person |
| Verifies | Registration, ownership, control | Identity, address, legitimacy |
| Typical use | Onboarding a company customer | Onboarding the people behind it |
In practice they run together: you KYB the company and KYC its beneficial owners.
How KwiikPay handles KYB
KwiikPay is registered as a VASP in Poland and, in Canada, as a Payment Service Provider under the Retail Payment Activities Act (RPAA, supervised by the Bank of Canada) and a Money Services Business with FINTRAC. Business onboarding runs full KYB — entity verification, UBO identification, sanctions/PEP/adverse-media screening and risk rating — with enhanced due diligence applied to higher-risk profiles. That compliance posture is what lets KwiikPay serve regulated businesses other providers turn away, while keeping the network clean.
FAQs
What is the difference between KYB and KYC?
KYC (Know Your Customer) verifies an individual person; KYB (Know Your Business) verifies a company — its registration, its ownership structure, and the individuals who ultimately control it (the UBOs). Onboarding a business almost always involves both: KYB on the entity, KYC on its beneficial owners and directors.
What does a KYB check involve?
Typically: confirming the company exists and is in good standing (registry checks), identifying the ultimate beneficial owners (UBOs), screening the business and its owners against sanctions, PEP and adverse-media lists, and assigning a risk rating that determines the level of due diligence applied.
What is a UBO?
A Ultimate Beneficial Owner is a natural person who ultimately owns or controls a company — usually anyone holding more than a set ownership threshold (commonly 25%). Identifying UBOs is a core part of KYB because it stops bad actors hiding behind corporate layers.
How long does KYB take?
For a straightforward company it can complete in around a business day; complex ownership structures or higher-risk profiles take longer because they trigger enhanced due diligence.