Business KYC (KYB): Verifying Companies, UBOs and Beneficial Owners
Onboarding a company is ten times harder than onboarding a person. Here's how to do KYB properly.
Know Your Business (KYB) — also called Customer Due Diligence on Legal Entity Customers under the FinCEN CDD Rule — requires you to verify the company itself, identify every Ultimate Beneficial Owner (UBO) over the 25% threshold, identify a control person, and run KYC on each of them.
Done well, KYB unlocks B2B revenue safely. Done poorly, it is the number-one finding in FinCEN consent orders. This guide covers every step.
What KYB Actually Requires
Verify the company's legal existence (registration certificate, good standing), registered address, EIN and trading status. Identify every individual owning 25%+ directly or indirectly. Identify one control person. Run full individual KYC on each. Screen the entity and every UBO against sanctions and PEP lists.
Company Lookups and Registry Data
In the US, secretary-of-state filings provide formation data. The Corporate Transparency Act introduced a federal beneficial-ownership registry at FinCEN. Globally, Companies House (UK), Handelsregister (DE), KvK (NL) and equivalents provide structured registry data.
UBO Discovery and Ownership Charts
Walk the ownership chain from the operating entity up through holding companies, trusts and SPVs until you reach natural persons. Document the chain visually. Flag complex structures involving offshore jurisdictions or nominee directors for EDD.
Documents Typically Collected
Certificate of incorporation, articles of association, certificate of good standing, EIN letter, ownership chart, board resolution authorizing the account, government ID for each UBO and the control person, and proof of address for the registered office and each UBO.
Risk Scoring and Tier Assignment
Score by industry (cash-intensive, MSBs, crypto, gambling = higher), geography (sanctioned or high-risk jurisdiction = higher), structure complexity, transaction profile and PEP exposure. Tier into Standard, Enhanced or Decline.
Ongoing KYB Monitoring
Re-verify annually. Subscribe to registry-change feeds so you're alerted on director changes, ownership changes and adverse filings. Re-run sanctions screening daily.
Key Takeaways
- Verify entity + every 25%+ UBO + one control person.
- Build a documented ownership chart up to natural persons.
- Subscribe to registry-change feeds for ongoing KYB.
- Complex offshore structures = automatic enhanced due diligence.
Related Verification Services
Verify business registration, status, and good standing.
Identify individuals with 25%+ ownership.
Verify Companies House registration and filings.
Authenticate founding documents.
Frequently Asked Questions
What is the FinCEN 25% threshold?
Under the CDD Rule you must identify every individual who owns 25% or more of the equity interests of a legal-entity customer, plus one control person.
How long does KYB usually take?
Simple US LLCs complete in under 24 hours. Complex multi-jurisdiction structures with multiple UBOs typically take 2–5 business days.
Do I have to file Beneficial Ownership Information with FinCEN?
The Corporate Transparency Act requirements apply to reporting companies; your customers may be required to file, and you may rely on those filings as part of your CDD.
Onboard businesses confidently.
Global registry lookups, automated UBO discovery, ownership-chart generation and per-UBO KYC in a single workflow.