What does exactly KYB mean?
KYB (Know your Business) refers to a regulatory obligation established by companies to prevent fraud in their business-to-business (B2B) relationships and transactions. KYB verification consists of an exhaustive examination of a company, its activity, its identity data, its financial health, its history, its practical information and the information about the people related to it.
What are the basic KYB requirements?
KYB frequently consists of an Anti-Money Laundering (AML) compliance that requires verification of the following aspects of an entity:
- Registration and business license: establish that the entity exists and is real.
- Identity of the directors, managers and other owners (UBO): to which a Know Your Client (KYC) process must be executed.
Why is KYB important?
KYB ensures fraud prevention and productive regulatory compliance in certain areas, such as in the anti-money laundering case or in transparency. All this helps businesses achieve quality, competence, credibility and authority in the market. The better the rating a company has from the authorities and the market, the higher the business leads it attracts.