Know Your Business (KYB) refers to the process that financial institutions and other regulated entities use to verify and understand the businesses they are dealing with. Similar to Know Your Customer (KYC), KYB is a critical element in anti-money laundering (AML) and financial crime compliance. The purpose of KYB is to ensure that businesses are legitimate and not involved in illicit activities such as money laundering, terrorism financing, or fraud.

KYB involves verifying a company’s ownership structure, identifying its ultimate beneficial owners (UBOs), and assessing its risk level based on its operations, geography, and industry. By performing thorough due diligence, institutions can detect suspicious or high-risk business relationships early. This helps prevent financial crimes and ensures compliance with regulatory requirements, reducing the risk of fines or reputational damage. Effective KYB measures are essential for safeguarding the integrity of financial systems and preventing misuse by criminal enterprises.