What Is A KYB?

You've been asked to implement KYB (Know Your Business) verification for a client or partner, but you're not sure where to start. Here's the deal: this guide walks you through the process step by step, explains what happens behind the scenes, and gives you fixes if something goes wrong. As of 2026, KYB remains a cornerstone of financial compliance, especially for B2B transactions under FinCEN and EU AMLD6 rules.

Quick Fix Summary

What’s Happening

Know Your Business (KYB) verifies a company’s legal and financial identity, plus its controlling individuals. Think of it as KYC’s business cousin—it stops shell companies from laundering money, funding terrorism, or committing fraud. As of 2026, regulators like FinCEN and the European Central Bank require KYB checks for all B2B onboarding in regulated industries.

During a KYB check, your platform confirms:

• The company’s legal registration (Articles of Incorporation, for example)
• Physical address and whether it’s actually operating
• UBOs’ names and ownership stakes (anyone owning ≥25% or calling the shots)
• Sanctions, PEP (Politically Exposed Persons), and negative news checks

Step-by-Step Solution

Here’s the exact workflow to run a KYB check in under 10 minutes:

1. Choose a KYB platform
   Log in to your provider’s dashboard (e.g., Sumsub, Trulioo, or Alloy). Sumsub, for instance, covers 195+ countries and verifies 2,500+ document types as of 2026.
2. Enter company details
   Head to Business Verification → New Check. Type in the legal company name and where it’s registered. On Sumsub, that’s Dashboard → Verification → Business → Add Company.
3. Upload registration documents
   Upload the Certificate of Incorporation (or equivalent). Sumsub takes PDF, JPG, PNG, and HEIC files. Keep it under 5MB and at least 300 DPI.
4. Identify UBOs
   Add each UBO via Add Person. Enter their full legal name, birth date, and nationality. UBOs also need individual KYC (ID scan + liveness check). Cross-check against the ECB sanctions list.
5. Run screening
   Hit Start Screening. The platform checks the company and UBOs against global sanctions, PEPs, and negative media. That usually takes 2–3 minutes.
6. Review and download report
   Once done, grab the PDF compliance report from Reports → Business Reports → Download. Save it in your audit folder (e.g., \\Compliance\KYB\2026).

If This Didn’t Work

If the check fails or gets stuck:

• Check document quality: Re-upload the Certificate of Incorporation in color, full-page, and high-res. Blurry or partial scans trigger manual reviews.
• Verify UBO thresholds: Double-check ownership stakes. If no one owns ≥25%, find the person with significant control (PSC) via company filings. UK guidance says this includes directors and those influencing board decisions.
• Retry sanctions screening: Use a secondary API (e.g., Refinitiv World-Check) to double-check. Some old systems flag harmless names as PEP matches.

Prevention Tips

Keep your KYB process smooth and audit-ready:

• Automate UBO updates: Schedule bi-annual UBO re-screening using your KYB platform’s API. Most tools (e.g., Alloy) offer GET /v1/business/{id}/ubo endpoints with delta updates.
• Maintain a document vault: Store all KYB files in an encrypted SharePoint or AWS S3 bucket with versioning. Label folders by year and client ID (e.g., KYB_2026_ClientX_Inc).
• Use a risk-based approach: High-risk industries (crypto, gaming, fintech) need extra steps. Add source of funds checks, transaction monitoring, and deeper UBO digging.
• Train your team: Run quarterly compliance training on FinCEN’s BOI reporting rules (updated in 2024 and still enforced in 2026).