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KYB Meaning

Know Your Business; a set of due diligence processes used by financial institutions to verify the identity of a "corporate entity" rather than an individual. This involves identifying the "Ultimate Beneficial Owners" (UBOs)-the real people who actually own or control the company.

KYB is designed to prevent "shell companies" from being used for money laundering, tax evasion, or terrorist financing. It requires the business to provide corporate registration documents, proof of address, and a clear description of their business activities.

In the B2B fintech world, KYB is a major "friction" point. Verifying a complex global corporation can take weeks of manual work.

Modern "e-KYB" services are trying to automate this by connecting directly to government business registries, allowing a company to be "verified" in minutes rather than days.

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