What is KYB (know your business)?
KYB, short for know your business, is the process a bank or payment provider uses to verify a company before and while serving it: that it exists, who owns and controls it, what it does and where its money comes from. It is the company version of KYC (know your customer). Example: a Hong Kong trading company applies for an account. The provider checks its registration documents, identifies the two shareholders who each own 40%, verifies the director who runs it, and asks for invoices from its main supplier and buyer.
- KYB verifies a company's existence, ownership, control, activity and source of funds.
- US banks must identify each person who owns 25 percent or more of a company and one person who controls it, under FinCEN's customer due diligence rule.
- The same rule requires providers to understand the nature and purpose of the relationship and to monitor accounts on an ongoing basis.
- Sanctions checks look through ownership too: OFAC treats companies 50 percent or more owned by blocked persons as blocked.
- Declaring realistic volumes at onboarding avoids reviews later.
What KYB checks
In the United States, FinCEN's customer due diligence (CDD) rule requires banks and other covered institutions to have written procedures to identify and verify the beneficial owners of companies opening accounts, understand the nature and purpose of the relationship, and monitor on an ongoing basis to report suspicious transactions and update customer information.
| Check | Typical evidence |
|---|---|
| The company exists | Certificate of incorporation, registry extract, articles |
| Who owns it | Shareholder register; ownership chart through any holding companies |
| Who controls it | Director and officer list; ID of signatories and one senior manager |
| Sanctions | Screening of the company, owners, directors and counterparties |
| What it does | Website, contracts, invoices, customs or trade documents |
| Where money comes from and goes | Main buyers and suppliers by country; expected monthly volumes |
Sources: FinCEN, CDD rule; OFAC FAQ 401; typical evidence compiled by the Helm Editorial Team, varies by provider. As published on 29 October 2026.
Where a business meets it
At account opening, again when ownership or activity changes, and during periodic reviews. A payment much larger than the volume declared at onboarding, a new country, or a new type of counterparty can prompt questions. FinCEN's March 2025 interim final rule removed the requirement for US companies to report beneficial ownership to FinCEN, but it did not remove banks' own CDD checks.
Common mistakes
- Using a trading name on one form and the legal name on another. Use the registered name everywhere.
- Leaving out a holding company. Show the full chain up to the individuals.
- Stale documents. Proof of address and registry extracts often must be recent.
- Understating volumes. Declare the figures you will actually run, including your largest payment.
Related terms and how Helm handles it
KYB is part of anti-money laundering controls and includes sanctions screening. Each Helm account has a named account manager, and review questions are answered in writing within one business day. Helm does not serve businesses in every country; see eligibility.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
What does KYB stand for?
Know your business. It is the set of checks a financial institution runs on a company customer: its registration, owners, controllers, activity and source of funds.
What is the difference between KYC and KYB?
KYC verifies an individual customer. KYB verifies a company, which includes running KYC on the individuals who own or control it.
What documents are needed for KYB?
Usually the certificate of incorporation, a registry extract, the shareholder register and ownership chart, IDs for owners of 25 percent or more and for a controlling person, proof of address, and evidence of trade such as invoices. Requirements vary by provider and country.
Why do providers ask about my suppliers and buyers?
US rules require them to understand the nature and purpose of the relationship and to monitor transactions. Knowing your trade lets them recognize normal payments and question unusual ones.
References
- FinCEN: Customer Due Diligence final rule
- Legal Information Institute: 31 CFR 1010.230, beneficial ownership requirements for legal entity customers
- OFAC: FAQ 401, the 50 Percent Rule and indirect ownership
- FinCEN: FinCEN removes beneficial ownership reporting requirements for US companies and US persons (21 March 2025)
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.