What is KYB (Know Your Business)?
Know Your Business (KYB) is the process of verifying the identity and legitimacy of business entities before establishing commercial relationships. gu1’s KYB solution automates business verification, beneficial ownership identification, and ongoing risk monitoring to ensure compliance with AML/CFT regulations.Why KYB Matters
Regulatory Compliance
- AML/CFT Requirements: Meet anti-money laundering and counter-terrorism financing obligations
- Global Standards: Comply with FATF recommendations and local regulations
- Audit Trail: Maintain complete documentation for regulatory audits
- Ongoing Monitoring: Continuous compliance with changing regulations
Business Risk Management
- Due Diligence: Comprehensive assessment of business partners and clients
- Fraud Prevention: Detect shell companies and fraudulent business entities
- Reputation Protection: Avoid relationships with high-risk or sanctioned businesses
- Financial Crime Prevention: Identify money laundering and terrorist financing risks
Operational Efficiency
- Automated Verification: Reduce manual review time by up to 80%
- Faster Onboarding: Complete KYB checks in minutes instead of days
- Cost Reduction: Lower operational costs with AI-powered automation
- Scalability: Handle high volumes without proportional resource increases
Key KYB Verification Components
1. Business Identity Verification
- Legal Name & Trade Name: Verify official business names
- Registration Number: Validate government registration numbers
- Tax Identification: Verify tax IDs (EIN, CNPJ, RFC, etc.)
- Incorporation Details: Confirm incorporation date and jurisdiction
- Business Address: Validate registered office location
2. Beneficial Ownership
- Ultimate Beneficial Owners (UBOs): Identify individuals with >25% ownership
- Control Structure: Map ownership hierarchy and control chains
- PEP Screening: Screen owners against politically exposed persons lists
- Sanctions Screening: Check owners against global sanctions lists
- Adverse Media: Monitor negative news about owners and directors
3. Document Verification
- Articles of Incorporation: Verify founding documents
- Business Licenses: Validate operating licenses and permits
- Tax Certificates: Confirm tax registration status
- Financial Statements: Assess financial health and stability
- Proof of Address: Verify business location
4. Risk Assessment
- Industry Risk: Evaluate risk level based on business sector
- Geographic Risk: Assess jurisdiction and operational location risks
- Transaction Patterns: Analyze expected vs. actual transaction behavior
- Relationship Risk: Evaluate partners, suppliers, and customers
- Compliance History: Review past violations or regulatory actions
gu1’s KYB Advantages
AI-Powered Intelligence
- Document Analysis: Automatically extract data from business documents
- OCR Technology: Read and validate documents in 100+ languages
- Anomaly Detection: Identify inconsistencies and red flags
- Risk Scoring: Dynamic risk scores based on 50+ factors
- Predictive Analytics: Forecast potential compliance issues
Global Coverage
- 200+ Jurisdictions: Support for businesses worldwide
- Local Regulations: Country-specific compliance requirements
- Multi-Language: Documentation and support in multiple languages
- Regional Experts: Built-in knowledge of local business practices
Continuous Monitoring
- Real-Time Updates: Automatic alerts on business changes
- Ownership Changes: Monitor UBO updates and transfers
- Sanctions Lists: Daily screening against updated lists
- Adverse Media: Ongoing monitoring of negative news
- License Expiry: Track business license renewals
Integration & Automation
- API-First Design: Easy integration with existing systems
- Webhook Notifications: Real-time alerts for status changes
- Bulk Processing: Handle high volumes efficiently
- Workflow Automation: Customizable approval workflows
- No-Code Rules: Build verification rules without programming
Common KYB Use Cases
Financial Institutions
- Business Banking: Verify commercial account applicants
- Merchant Onboarding: Screen payment processing clients
- Business Lending: Assess creditworthiness and legitimacy
- Trade Finance: Verify import/export business partners
Fintech & Payment Processors
- Marketplace Sellers: Verify vendor identities on platforms
- Payment Gateways: Screen merchants before activation
- Crypto Exchanges: Comply with crypto business regulations
- P2P Platforms: Verify business users on peer networks
B2B Marketplaces
- Supplier Verification: Validate vendor legitimacy
- Buyer Screening: Assess purchasing entity risk
- Partner Onboarding: Due diligence on business partners
- Distribution Networks: Verify channel partners
Real Estate & Professional Services
- Property Transactions: Verify buyer/seller entities
- Legal Services: Client identification for firms
- Accounting Firms: Verify business clients
- Consulting: Screen enterprise clients
KYB vs KYC
| Aspect | KYB (Business) | KYC (Individual) |
|---|---|---|
| Subject | Legal entities | Individual persons |
| Complexity | Higher (ownership structures) | Lower (single identity) |
| Documents | Corporate records, licenses | ID documents, proof of address |
| Timeline | 2-5 days (traditional) | 1-2 days (traditional) |
| Ongoing Monitoring | Complex (multiple stakeholders) | Simpler (single person) |
| Risk Factors | Industry, jurisdiction, UBOs | Income, nationality, PEP status |
| gu1 Processing | Minutes with AI automation | Seconds with AI automation |
Regulatory Framework
International Standards
- FATF Recommendations: Follow Financial Action Task Force guidelines
- Basel AML Index: Risk assessment based on global standards
- EU AMLD6: Sixth Anti-Money Laundering Directive compliance
- US Bank Secrecy Act: Customer Due Diligence (CDD) requirements
Regional Regulations
- United States: FinCEN CDD Rule, USA PATRIOT Act
- European Union: 4th, 5th, 6th AML Directives (AMLD)
- United Kingdom: Money Laundering Regulations 2017
- Brazil: COAF regulations, BACEN requirements
- Singapore: MAS AML/CFT guidelines
- UAE: FATF compliance, UAE AML laws
Risk Categories
Low Risk
- Established businesses (10+ years)
- Publicly traded companies
- Government entities
- Regulated industries with good compliance
- Low-risk jurisdictions
Medium Risk
- New businesses (1-5 years)
- Private companies with clear ownership
- Medium-risk industries
- Emerging market jurisdictions
- Complex ownership structures
High Risk
- Newly incorporated companies (less than 1 year)
- Shell companies or nominee structures
- High-risk industries (crypto, cash-intensive)
- High-risk jurisdictions (non-FATF compliant)
- Politically exposed ownership
- Adverse media findings
Get Started with KYB
Ready to implement automated KYB verification?KYB Workflow
Step-by-step KYB verification process
Data Requirements
Required data for business verification
Complete Example
Full KYB implementation with code
API Reference
API documentation for entity creation
Next Steps
- Review the KYB Workflow - Understand the complete verification process
- Check Data Requirements - See what data you need to collect
- Run the Complete Example - Implement KYB with code samples
- Get Your API Key - Start building your integration