What is know your business (KYB)?

KYB extends Know Your Customer principles to entity clients. It involves verifying the legal existence, registration details, and ownership structure of a business before establishing a commercial relationship. KYB is critical for TCSPs, legal professionals, and accountants who regularly onboard corporate clients.

Key KYB components

Know-your-business checks cover the company itself and the people who own and run it.

  • Entity verification: Confirming registration with the relevant companies registry
  • Beneficial ownership identification: Identifying all natural persons with 25%+ ownership or control
  • Director and shareholder screening: Checking all key individuals against sanctions lists
  • Business activity assessment: Understanding the entity's purpose and operations

FirmScreen's customer screening supports entity screening with beneficial owner checks.

Related terms