KYB

Definition

The KYB (Know Your Business), which means “Know your business” in French, is a verification process used by businesses to confirm the identity and legitimacy of a business entity with which they interact. Inspired by the concept of KYC (Know Your Customer), which applies to individuals, this process focuses on businesses and aims to ensure regulatory compliance, prevent fraud, and combat money laundering or terrorist financing.

How does KYB work?

This procedure consists of collecting and examining several essential pieces of information about the company concerned. It starts with legal identification, which includes verifying the company's registration number and legal documents such as the articles of association or the certificate of incorporation. Next, it is a question of identifying the beneficial owners (UBO - Ultimate Beneficial Owners), i.e. the individuals who actually own or control the business. This process also includes financial audits, such as analyzing tax information and financial data to ensure transparency. Finally, a risk assessment is carried out to verify whether the company has links to sanctions lists, high-risk jurisdictions, or suspicious activities.

Importance of KYB

This process is essential for businesses operating in regulated sectors such as finance, blockchain technologies, or digital services. It allows:

• To comply with international regulations such as anti-money laundering (AML) and anti-terrorist financing (CFT) standards.
• To protect against commercial fraud by ensuring that partners are reliable and legitimate.
• To strengthen trust between companies and their partners through increased transparency.

In summary, this approach is a key tool for ensuring safe and compliant business relationships, ensuring that all parties follow the rules and act ethically.

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