Know Your Business (KYB) process is not so different from the most widely known and standardized Know Your Customer (KYC) process. The difference lies in the purpose and intentionality of the process, focused on businesses.

KYB is a set of measures to obtain comprehensive information about business partners or clients. KYB is mandatory for financial and crypto platforms and is carried out under their internal policies and legal requirements.

Documents

The standard set of documents includes:

  • The company’s official extract from the business register

  • Information about the company’s ultimate beneficial owner (UBO)

  • Information about shareholders owning over 25% of the company’s shares

  • Information about the company’s director

Depending on the specifics of the business, the list of documents can vary. Companies licensed to work with crypto assets can also request confirmation of the welfare of beneficial owners, proof of the source of income, and other documents to identify activities and their legal grounds, as well as the identity of business owners and other executives.

Additional information, such as average monthly and yearly turnover, a detailed description of the activities, and other materials essential for establishing a legal relationship, is collected using questionnaires.

Licensed companies (payment or crypto service providers) impose more stringent requirements on customers during KYB and KYC procedures. For such companies, the standards for carrying out verification procedures are set by the regulator while the state supervisory authority controls the overall compliance.

Read more about KYB on our blog

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