KYB as a Service

KYB as a service is a good approach for companies that want to speed up the business onboarding process and not build an automated platform with their own internal resources. 

Other key benefits that come as a result of an automated KYB as a service software include:

• Minimized costs. Solutions like iDenfy’s Know Your Business solution include custom, pre-made templates for faster onboarding based on different industries, as well as other tailored options for certain markets, like a Secretary of State Search for U.S. entities. 
• Ensured KYB compliance. Most software providers focus on ensuring the easiest way possible for companies to keep all required data and make a compliant KYB history log, with beneficial ownership details, business company registration info, in-house compliance officer notes and dates, and other notes. They are updated constantly to reflect the current regulations and keep up with edge and high-risk cases appropriately. 
• Easy integration with existing systems. Pre-built third-party API solutions can be easily integrated via documentation and the help of support, depending on the concrete KYB service provider. In contrast, an in-house system would require massive resources and multiple engineers, developers and compliance specialists. 

Different companies use KYB as a service, as they need it to comply with Know Your Business verification requirements. In general, any business that handles transactions and wants to minimize the risk of fraud and money laundering should protect its B2B relationships and conduct KYB checks. In general, KYB as a service is popular among banks, fintechs, crypto firms, payment service providers, e-commerce marketplaces, insurance companies, and real-estate brokers, etc. 

KYB checks usually include the company name, registration number, address, legal status, directors, and UBOs. Other processes that are required for Anti-Money Laundering (AML) compliance, like sanctions screening, Politically Exposed Person (PEP) screening, and adverse media checks, are also required for KYB onboarding. 

Many providers, including iDenfy, combine KYB with identity verification (or  KYC) and AML measures under a single platform to confirm the people behind the business and minimize the need to implement multiple providers for different compliance procedures. 

KYB, or a KYB service, is designed to verify other businesses to see if they are legitimate and in line with internal risk appetite standards. In contrast, KYC or a KYC service is designed to verify individuals and their identities, which is a less complex process than verifying business identities. 

For example, a standard KYC for a person requires checking the government-issued ID and often, as a second layer, comparing the credentials and photo on the ID with their live selfie (biometric verification). Whereas KYB consists of multiple steps (like confirming that a company is a legally registered entity operating within the relevant jurisdiction), including KYC for directors and Ultimate Beneficial Owners (UBOs). 

Seamless API integration, access to global government registries, and other factors like automated KYB workflow building options are vital when choosing the right KYB as a service provider, especially if you’re operating in a highly regulated industry, such as banking. 

You should look for:

• KYC for related individuals and multi-layer ownership identification for complex corporate structures
• Automated access to official corporate registries in different jurisdictions
• Standard company detail validation, such as company status, registration, and address detail verification
• Built-in AML checks with PEPs and sanctions screening, criminal background check, bank account verification, watchlist screening and adverse media checks
• Ongoing monitoring for a compliant data log and continuous tracking of company changes, UBO updates, and risk signals