
KYB (Know Your Business) and KYC (Know Your Customer) are two important processes in compliance and validation, typically used in financial institutions and various industries to verify the identity and legitimacy of businesses and individuals.
KYB refers to the due diligence process undertaken by organizations to understand and verify the identity and business activities of their corporate clients or business partners. The goal is to ensure that the organization is conducting business with legitimate entities and to assess the potential risks associated with the business relationship. KYB involves gathering information about the company’s ownership structure, legal status, financial standing, beneficial owners, and other relevant details. This process helps organizations comply with regulations, prevent fraud, and mitigate risks in their business transactions.
KYC is the process through which organizations verify the identity and assess the risk associated with their individual customers or clients. It involves collecting and verifying personal information such as name, address, date of birth, and identification documents to establish the customer’s identity. The purpose of KYC is to prevent money laundering, terrorist financing, identity theft, fraud, and other illegal activities. By understanding their customers better, organizations can ensure compliance with regulations, manage risks effectively, and protect themselves and their customers from financial crimes.
KYB and KYC skills are relevant and necessary for various professionals working in industries that involve financial transactions, compliance, risk management, and customer due diligence. Some of the staff members who typically require KYB and KYC skills include:
Compliance OfficersResponsible for ensuring regulatory compliance and implementing compliance programs […]