Similar to KYC, KYB (Know your Business) aims to verify if the business is compliant with the AML/CFT regulations. However, while both of those procedures rely on checking the identity and the activity of a partner or a client, the difference lies in the purpose and intentionality of the procedure, focusing on the identification of businesses and suppliers for KYB, and on that of consumers or clients for KYC.
Know Your Customer (KYC) is a procedure implemented by certain companies to identify and verify the identity of their clients, to comply with the applicable regulations in this regard. This procedure aims to combat money laundering, terrorist financing, tax offenses, and identity theft when registering a user as a customer of a company.
On the other hand, the KYB (Know Your Business) procedure shares all those characteristics, but the difference lies in the user being identified: while in the standard procedure, potential clients or users are identified to register them within a company, the Know Your Business procedure allows for the identification of the Responsible Person or Legal Representative of a Company.