KYB (Know Your Business)
The process of verifying the identity, ownership, and legitimacy of a business customer during onboarding.
Know Your Business (KYB) extends identity verification to business customers — confirming the entity exists, is legitimate, and identifying its beneficial owners.
Why it matters
Business accounts can move large volumes, so verifying ownership and legitimacy is essential to prevent shell-company and synthetic-business fraud. KYB pairs with KYC on the individuals behind the business.
The residual
As with consumer onboarding, KYB lowers fraud frequency but leaves a residual loss when a fraudulent business clears checks. That loss is insurable through Identity Fraud Loss Insurance.
BSA / AML
The Bank Secrecy Act and Anti-Money-Laundering framework requiring institutions to detect, prevent, and report financial crime.
CIP (Customer Identification Program)
A U.S. regulatory requirement for financial institutions to verify the identity of customers opening accounts.
KYC (Know Your Customer)
The regulatory process of verifying the identity of customers during onboarding to prevent fraud and financial crime.