01
Entity verification
Confirm legal name, registration number, status, and address against authoritative company registries.
Glossary · KYB
What is KYB (Know Your Business)?
Verifying companies — and the people who really control them.
KYB, short for Know Your Business, is the process of verifying that a business customer is legitimate, legally registered, and not a front for illicit activity. It extends KYC to legal entities and the individuals who own or control them.
02
Ownership mapping
Identify directors and ultimate beneficial owners (UBOs), including layered or cross-border ownership structures.
03
Principal screening
Run KYC and sanctions/PEP/adverse-media screening on each beneficial owner and key controller.
04
Document collection
Gather incorporation documents, ownership declarations, and authorization to act on behalf of the business.
Definition
Know Your Business (KYB) is the entity-level equivalent of KYC. It confirms a company's legal existence and good standing, identifies its directors and ultimate beneficial owners (UBOs), and screens the entity and its principals against sanctions, PEP, and adverse-media data before and during the relationship.
Why KYB matters
Shell companies and opaque ownership structures are a primary vehicle for laundering and sanctions evasion. Regulators increasingly require firms onboarding business customers to look through the corporate veil to the humans behind it. Robust KYB prevents onboarding bad actors and satisfies beneficial-ownership obligations.
How Pegalio helps
KYB is document-heavy and stakeholder-heavy: multiple owners, signatories, and uploads per entity. Pegalio runs that as a structured onboarding project — a branded portal where the business uploads incorporation and ownership documents, forms that capture UBO declarations, role-based review and approval, automations that chase missing items, and a full audit trail of every verification. It integrates with registry and screening providers so the entity picture stays current.
Frequently asked questions
How is KYB different from KYC?
KYC verifies an individual. KYB verifies a legal entity and then applies KYC-style checks to its beneficial owners and controllers.
What is a UBO in KYB?
An ultimate beneficial owner is the natural person who ultimately owns or controls the business, usually above a set ownership threshold (commonly 25%).
Who needs to perform KYB?
Any regulated firm that onboards business customers — banks, B2B fintechs, payment processors, and marketplaces serving sellers or merchants.
What documents does KYB require?
Typically certificate of incorporation, proof of registered address, ownership/shareholder structure, and identification for each beneficial owner.