KYB (Know Your Business)
The checks a bank or platform runs to verify a business customer, its owners and its risk before and after opening an account.
What KYB is
KYB is the business version of KYC. It confirms that a company exists, who owns and controls it, what it does and how risky the relationship is. In the US, banks do this under the Bank Secrecy Act's customer identification and customer due diligence (CDD) rules.
How it works
The bank collects the company's legal details and documents, then identifies its beneficial owners and a control person. It verifies the information, screens the business and its owners against OFAC sanctions lists and sets a risk rating that drives ongoing monitoring.
- 01 · COLLECT Legal name, address, EIN, formation documents and the nature of the business.
- 02 · VERIFY Owners of 25% or more and one control person are identified and verified.
- 03 · MONITOR The business is screened and monitored, with reviews if its risk changes.
| Check | What it covers | Rule |
|---|---|---|
| Business identity | Legal name, address, EIN and formation documents | Customer identification program rule |
| Beneficial owners | Each person owning 25% or more | Customer due diligence rule |
| Control person | One senior manager, such as the CEO or CFO | Customer due diligence rule |
| Sanctions | The business and its owners against OFAC lists | OFAC regulations |
Since February 2026, FinCEN relief lets banks collect owner details at a business's first account, then update them when risk calls for it.
Who must comply
- Banks and credit unions opening accounts for companies
- Broker-dealers, mutual funds and other covered financial institutions
- PayFacs and marketplaces onboarding sub-merchants and sellers under card network and acquirer rules
- Fintechs opening business accounts for a sponsor bank, under the bank's program
Cross River runs KYB reviews alongside KYC, underwriting, licensure reviews and site visits as part of its compliance management system. See how Cross River approaches compliance.