KYC vs KYB: Everything You Need to Know in under 5 Minutes!

Global

Know Your Customer (KYC) and Know Your Business (KYB) are Anti-Money Laundering (AML) measures that help businesses identify and verify the identities of their customers in order to detect and mitigate financial crime risks posed by them. Therefore, KYC and KYB are important components of a business’s AML program, protecting them from Money Laundering, Terrorism Financing, and Proliferation Financing risks.

While KYC and KYB have the same objective, there are intricate differences between them. These differences include the following:

Focus: KYC is conducted for customers who are individuals, while KYB is conducted for customers who are legal persons such as businesses, corporations, etc

Underlying Processes: KYC involves gathering information about an individual customer’s identity. The KYB process involves gathering information about a business’s ownership structure, operational details, etc.

Types of Documents Collected: KYC involves collecting and authenticating identity documents such as government-issued ID, municipal documents, etc. KYB involves collecting information such as Articles of Association, ownership structure, trade licence, etc.

In our latest video, Ms. Dipali Vora (CAMS, ACS) from NIYEAHMA – Our Knowledge Partner, discusses and clarifies these differences. Watch our video now for an easy-to-understand explanation!