Know your business
KYBAlso called business verification, corporate due diligence
Know your business is the process of verifying a company customer. A firm confirms the entity exists, checks its registration and status, identifies its directors and traces its ultimate beneficial owners. It is the corporate side of customer due diligence and applies when banks, payment firms and platforms onboard merchants or business clients.
How it works
The firm pulls the company's record from the official registry, confirms its number, address and status, and collects its constitution and ownership chart. It identifies directors and anyone holding more than 25% and verifies them as individuals. It screens the company and each person against sanctions, PEP and adverse media lists, then rates the risk.
Businesses move larger sums than individuals and can hide owners behind layers. Corporate registers help but are not definitive. UK rules require firms to report material discrepancies between their findings and Companies House. Identity verification of directors at Companies House became mandatory from 18 November 2025.
The rules
Requires firms to obtain company name, number, registered office, directors and beneficial owners, and to understand ownership and control.
UK relevant persons onboarding corporate customersRequires new and existing directors and PSCs to verify their identity with Companies House.
Directors and persons with significant control of UK companiesRequires identification and verification of beneficial owners and a control person for legal entity customers.
US banks, broker-dealers, mutual funds, futures firmsCommon questions
What is the difference between KYB and KYC?
KYC verifies individuals. KYB verifies a business, including its legal existence, its directors and its beneficial owners. KYB includes KYC checks on the individuals behind the company.
Can a firm rely on a company register for KYB?
Registers are a starting point. UK rules say firms should not rely solely on the register, and firms must report material discrepancies they find between their own information and Companies House records.
How often is KYB refreshed?
Firms refresh on a risk basis, through periodic reviews and when triggers occur, such as a change of directors, ownership or activity. High-risk businesses are reviewed more often.
Our coverage
News and analysis on KYC and identity from RegTech Post.
Read the coverage →RegTech PostSinpex Positions Itself as a Key Player in KYB Compliance TechRead the article →RegTech PostCompanies House ID Checks: A Step-by-Step Overview for UK CompaniesRead the article →
