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Definition
KYB, or Know Your Business, is the process of verifying the identity, ownership, and legitimacy of a business entity before establishing a commercial relationship. It typically involves validating company registration details, beneficial owners, and business documentation.

Why it matters
KYB helps organizations prevent fraud, money laundering, shell company abuse, and regulatory violations when onboarding business customers or partners. It is a key compliance requirement in many regulated industries.

Example use case
A payment processor verifies a merchant’s incorporation documents, ownership structure, and tax registration before approving the business for payment processing.