While each process is similar, there are key differences that separate KYB, KYC and AML apart. KYB is carried out when you want to verify a business, while KYC targets the identification of a single individual. AML, meanwhile, defines the entire process, with KYC and KYB being mere components of this.

A Know Your Business check verifies that a company is legitimate and confirms key information about the organisation and the individuals behind it. This can include its registration status, registered address, directors, ownership structure, Persons with Significant Control, and ultimate beneficial owners.

KYB verification can review company registration details, trading status, registered addresses, directors, shareholders, PSCs, UBOs and relevant company filings. Businesses may also be screened for sanctions, PEP exposure and other financial crime risks as part of a wider risk-based process.

A Person with Significant Control is someone who owns or controls a company. This can include individuals holding more than 25% of its shares or voting rights, those able to appoint or remove most directors, or those otherwise exercising significant influence or control. A UBO is the individual who ultimately owns or benefits from the business.

UBO checks help businesses understand who ultimately owns or controls a corporate customer. This can reveal complex ownership structures, support risk assessment, and help identify individuals who may require sanctions, PEP, or enhanced due diligence screening.

KYB checks should generally be completed before establishing a new corporate relationship. Further checks may be needed when company information changes, concerns arise about previously supplied information, or the customer’s risk profile requires additional scrutiny.

KYB should not be treated as a one-off exercise. Corporate information and beneficial ownership records should be reviewed throughout the relationship to ensure they remain accurate and consistent with the customer’s activity and risk profile.

Digital KYB checks bring company verification, ownership information and risk screening into one onboarding process. This helps teams evaluate corporate customers more efficiently, reduce manual checks and make informed decisions before entering a business relationship. SmartSearch states that its KYB checks can be completed within minutes.

A higher-risk result does not automatically mean the relationship must be rejected. The business may need to gather additional information, investigate ownership or funding, and apply enhanced due diligence and ongoing monitoring before deciding whether to proceed.

Yes. Sanctions and PEP screening can be used alongside business verification to assess companies, directors, beneficial owners and other associated individuals for potential financial crime risk.