KYB software (Know Your Business software) automates the verification, risk assessment, and ongoing monitoring of corporate clients and business entities. It extends standard AML practices that focus on individuals (KYC) to encompass companies, their structure, ownership, regulatory status, UBOs (ultimate beneficial owners), and transactional behavior.

Through integration with registries, screening databases, adverse media sources, and workflow engines, KYB software helps firms onboard, monitor, and manage business-to-business relationships securely and compliantly.

KYB Software

KYB software is a tool or platform used by regulated institutions to conduct due diligence on businesses. Rather than relying solely on manual checks or piecemeal data lookups.

KYB software centralizes:

• Business registry and incorporation data

• Ownership structure and UBO identification

• Screening against sanctions, PEP, or watchlist databases

• Adverse media, negative news, and intelligence signals

• Continuous monitoring, alerting, and workflow automation

By automating these tasks, KYB software reduces operational friction, lowers false positives, and enables scalable compliance.

Why KYB Software Matters In AML Compliance

Regulators increasingly expect firms to know not only who their individual customers are (KYC) but also who their business clients are. Without strong KYB controls, firms risk onboarding shell companies, entities with hidden links to illicit actors, or businesses that are non-compliant.

According to LSEG’s “KYC and KYB: Unpacking the Differences,” effective KYB helps firms detect integrity, identity, and operational risks early, thereby improving the allocation of compliance resources to higher-risk cases.

Furthermore, as regulatory frameworks evolve (for example, in the EU’s AML directives or the UK’s economic crime strategy), having a robust KYB system is becoming essential for meeting continuous due diligence requirements.

Core Features Of KYB Software

Below are key functional capabilities you should expect from KYB software:

Data Aggregation & Validation

Collects data from multiple sources (company registries, regulatory filings, commercial providers) and validates consistency, reducing dependency on manual checks.

Ownership & UBO Mapping

Automatically constructs corporate hierarchies and identifies beneficial owners, even across complex and nested entity structures.

Screening & Risk Scoring

Matches entities, officers, and UBOs against sanction lists, PEP databases, and adverse media to compute risk scores.

Continuous Monitoring & Alerts

Triggers event-driven alerts (e.g. change of directors, adverse news, sanctions updates) rather than relying solely on periodic refreshes.

Workflow & Case Management

Routes alerts and escalations, documents review decisions, provides audit trails, and integrates with broader compliance ecosystems.

How KYB Software Works In Practice

When a business client applies for onboarding, the KYB software runs checks in real time, verifying registry data, matching ownership, and screening against databases. If issues are flagged, the system flows the case into an investigation queue. After onboarding, continuous scanning monitors for changes like directorship shifts or negative news. The benefits: faster turnarounds, fewer manual interventions, and more defensible audit records.

Many compliance teams now prefer dynamic, real-time KYB systems over static periodic reviews, they reduce blind spots and help firms react faster to emerging risks.

Facctum’s Know Your Business (KYB) Solution

Facctum offers a dedicated Know Your Business solution that addresses the full entity lifecycle, from onboarding through ongoing monitoring.

Key highlights:

• Real-time business verification using integrated registry, company, and commercial data sources

• Automated risk profiling and escalations

• Event-triggered alerts for changes in ownership, directorship, or adverse events

• Workflow tools and audit-ready documentation

• Seamless alignment with other Facctum products (e.g. Watchlist Management, Customer Screening)

• Scalable architecture supporting global entity coverage

Because the Facctum KYB system is part of the broader compliance platform, users benefit from cross-product integration and consolidated reporting.

The Future Of KYB Software

KYB systems will increasingly move toward:

• Predictive analytics and graph-based risk models: using network analysis and AI to detect hidden relationships and evolving threats.

• Interoperability and data sharing frameworks: allowing trusted institutions to share verified entity data under privacy-compliant protocols.

• Regulatory alignment: as jurisdictions tighten entity transparency laws (e.g. UBO registers, beneficial ownership mandates), KYB platforms will need to be more adaptive.

• Real-time and continuous verification: shifting away from batch refreshes to event-driven validation as regulatory expectations rise.

These trends suggest KYB will become more proactive, intelligence-led, and integral to financial crime risk management.

Strengthen Your KYB Compliance Framework

As corporate structures grow more complex and regulatory scrutiny intensifies, having a unified, intelligent KYB software is no longer optional, it’s mission-critical. A robust system gives you transparency into entity risk, early detection of threats, and defensible audit trails.

Contact Us Today To Strengthen Your AML Compliance Framework