Know Your Business (KYB) is a compliance process specifically geared towards businesses, similar to widely-used Know Your Customer (KYC) procedures for individuals.
As such, KYB constitutes 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 according to 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
The list of required documents may vary according to the policies of specific businesses. Companies licensed to work with crypto assets can also request confirmation of the welfare of beneficial owners, proof of source of income, and other documents to identify activities and their legal grounding, as well as the identities of business owners and other executives.
Additional information is collected via questionnaires, including but not limited to: average monthly and yearly turnover; a detailed description of business activities; and materials essential for establishing a legal relationship.
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 regulators while the state supervisory authority controls overall compliance.
Read more about KYB on our blog!
