Know your business (KYB)
Know your business (KYB) is the set of checks a regulated provider runs on a company before opening an account and throughout the relationship. It establishes who the company is, who owns and controls it, what it does and where its money comes from. In EU law, KYB is the customer due diligence that anti-money laundering rules require for legal entities.
What KYB checks
A KYB review builds a picture of the company from the outside in.It starts with the company's existence: a registry extract, the registered address, the legal form and, where it has one, the Legal Entity Identifier. Then it identifies the people: directors, authorised signatories and every ultimate beneficial owner.Next comes the business itself: what the company actually does, where it operates and, for regulated activities, the licence that allows it. A payment business, a crypto-asset service provider or an iGaming operator will be asked for its authorisation from the relevant regulator, as covered in onboarding AML-regulated entities.Everything is screened against sanctions lists, politically exposed person lists and adverse media. Finally, the provider asks about expected activity: volumes, currencies, countries and counterparties, and where the money comes from.
KYB vs KYC
| KYC (know your customer) | KYB (know your business) | |
|---|---|---|
| Who is checked | An individual | A company, and the people who own and run it |
| Main documents | ID, proof of address | Registry extract, ownership structure, licences, plus KYC on each UBO and director |
| Key question | Is this person who they say they are? | Who really owns and controls this company, and what does it do? |
| When it's done | Onboarding and periodic review | Onboarding and periodic review |
How KYB works at onboarding
- The company applies and submits its corporate documents.
- The provider verifies the company in the official registry.
- It maps the ownership structure up to the natural persons and verifies each UBO and director.
- It screens the company and the people against sanctions, PEP and adverse media sources.
- It reviews the business model, licences and expected payment flows, and asks for source of funds evidence where needed.
- It assigns a risk rating, which decides how often the relationship is reviewed, and approves or declines the application.
KYB after onboarding
KYB doesn't end when the account opens. Providers review each client periodically, more often for higher-risk relationships, and refresh documents that have expired or changed.Certain events trigger an early review: a change of ownership or directors, a move into new markets or products, or payment volumes well above what was declared at onboarding, which transaction monitoring picks up. A request for updated documents a year into the relationship is routine, not a sign that something is wrong.What to prepare before applying
- A current registry extract and the articles of association
- A group structure chart up to the natural persons, with percentages at each level
- ID and proof of address for each UBO and director
- Licences for any regulated activity, with the regulator's register entry
- A short description of the business model, main customers and suppliers
- Expected monthly volumes, currencies and countries
- Evidence of where the initial funds come from
FAQ
It depends on the company's risk profile and how complete the application is. A simple company with a complete file moves fastest; regulated or higher-risk businesses take longer because more evidence has to be reviewed.
AML rules require ongoing monitoring, not a one-off check. Changes in ownership, activity or volumes, or simply a scheduled review, mean the provider has to update its records.
The term itself isn't in the law. What the law requires is customer due diligence on every client, including companies, under the EU's anti-money laundering rules, and KYB is how providers carry it out.
Last reviewed October 21, 2026Disclaimer
This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
What We Offer
IBAN Accounts For Your Business
Support & Compliance
Narvi Knowledge Center
Alternative Investment Funds [whitepaper]Family Offices [whitepaper]Shipping Industry [whitepaper]How to Open a Business Account in FinlandNarvi vs. Wise, Revolut, N26, and other alternativesNarvi vs. Stable.comNarvi vs. payabl.Narvi vs. ConnectPayNarvi vs. IBAN4UNarvi vs. GenomePayments BlogPayments Glossary
Narvi Payments Oy Ab is an Authorized Electronic Money Institution (EMI). Narvi’s EMI license is granted by the Finnish Financial Supervisory Authority (FIN FSA) with the registration number 3190214-6. Narvi’s license is passportised to all European Union countries.
Built and regulated in Finland© 2026 Narvi. All Rights Reserved.
v1.322.0