{"id":2009,"date":"2024-11-13T11:05:00","date_gmt":"2024-11-13T10:05:00","guid":{"rendered":"https:\/\/rolling-funds.our-little-company.com\/?p=2009"},"modified":"2025-08-14T14:56:54","modified_gmt":"2025-08-14T12:56:54","slug":"kyb-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.rolling-funds.com\/en\/articles\/kyb-ce-que-vous-devez-savoir\/","title":{"rendered":"KYB: What You Need to Know"},"content":{"rendered":"<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.rolling-funds.com\/en\/kyb\/\" data-type=\"link\" data-id=\"https:\/\/www.rolling-funds.com\/kyb\/\">KYB processes<\/a> is an essential verification process to ensure the legitimacy and legal compliance of businesses, particularly in the context of anti-money laundering (AML) regulations and other legal obligations. This control, widely implemented by financial institutions and other regulated organisations such as banks and insurance companies, helps to secure business relationships and protect stakeholders against the risks of fraud and fictitious or fraudulent business transactions.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why is KYB important? <\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Verifying the origin and authenticity of a business before entering into a commercial relationship is crucial to avoid fraudulent or corrupt practices. KYB helps to:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Prevent financial crimes:<\/strong> KYB controls identify suspicious businesses and help prevent money laundering, terrorist financing, and other financial crimes.&nbsp;<\/li>\n\n\n\n<li><strong>Identify beneficial owners (UBO):<\/strong> Transparency regarding the actual owners of a business reveals those who ultimately benefit from commercial activities. This control helps prevent criminals from concealing illicitly obtained funds.&nbsp;<\/li>\n\n\n\n<li><strong>Protect reputation and finances:<\/strong> By ensuring the legitimacy of business partners, companies minimize the risks of financial loss and damage to their reputation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the KYB process?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The KYB process includes verifying the partner and\/or client business before engaging in a commercial relationship. This control involves several steps, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Confirmation of basic information:<\/strong> verification of the physical address, phone number, and legal registration.&nbsp;<\/li>\n\n\n\n<li><strong>Validation of the \"business license\":<\/strong> authentication of registration documents to ensure the legitimacy of the business.&nbsp;<\/li>\n\n\n\n<li><strong>Verification of funding sources:<\/strong> evaluation of financial flows to detect any anomalies.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">KYB regulations<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">KYB is often seen as an extension of KYC (Know Your Customer) procedures. However, unlike KYC, which has been applied to individuals for several decades, KYB regulations were only introduced more recently to fill a gap in business verification. In Europe, the 4th Anti-Money Laundering Directive (AML), adopted in 2017, mandates KYB to combat financial crime within businesses, and the 5th AML Directive has strengthened these requirements by incorporating automated verification technologies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Which organizations must conduct KYB checks?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">KYB (Know Your Business) compliance is not limited to banks. According to the EU's 5th Anti-Money Laundering Directive, a wide range of entities is required to comply with these obligations. The affected sectors include, among others:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Credit and financial institutions,&nbsp;<\/li>\n\n\n\n<li>Online banks and neobanks,&nbsp;<\/li>\n\n\n\n<li>Insurance companies and brokers,&nbsp;<\/li>\n\n\n\n<li>Auditors and accountants,&nbsp;<\/li>\n\n\n\n<li>Asset managers,&nbsp;<\/li>\n\n\n\n<li>Tax advisors,&nbsp;<\/li>\n\n\n\n<li>Cryptocurrency platforms,&nbsp;<\/li>\n\n\n\n<li>Notaries and real estate agents,&nbsp;<\/li>\n\n\n\n<li>Online gambling and betting services.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Even in less regulated sectors, businesses can proactively adopt KYB checks to enhance their security and protect their reputation against risks of fraud and illegal activities.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does a KYB check work?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A KYB check involves collecting and analyzing a set of essential information about a business, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business registration information:<\/strong> business name, registration number, VAT number, legal status, legal address, etc.&nbsp;<\/li>\n\n\n\n<li><strong>Share capital:<\/strong> amount and status (paid\/unpaid) of capital, as well as the date of incorporation.&nbsp;<\/li>\n\n\n\n<li><strong>Beneficial owners (UBO):<\/strong> identification of individuals who ultimately benefit from economic activity.&nbsp;<\/li>\n\n\n\n<li><strong>Governance structure and shareholding:<\/strong> distribution of roles and relationships among directors, shareholders, and any associated companies.&nbsp;<\/li>\n\n\n\n<li><strong>Business activities:<\/strong> industry sector (NACE, SIC, OKVED codes), field of activity, number of employees, etc.&nbsp;<\/li>\n\n\n\n<li><strong>Assets:<\/strong> inventory of movable and immovable property owned or leased by the company.&nbsp;<\/li>\n\n\n\n<li><strong>Legal and financial relationships:<\/strong> information on subsidiaries, litigations, tax debts, and links with third parties.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This information is obtained by the institutions via public registers and private sources, and <a href=\"https:\/\/www.rolling-funds.com\/en\/client-case\/how-rollingfunds-improved-diot-siacis-b2b-customer-verification-process\/\" data-type=\"link\" data-id=\"https:\/\/www.rolling-funds.com\/cas-client\/comment-rollingfunds-a-ameliore-le-processus-de-verification-de-la-clientele-b2b-de-diot-siaci\/\">the KYB process may involve identity verification to certify the company's true existence<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Compliance with KYB rules<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">KYB regulations require businesses to identify and assess the risks associated with each business relationship. This involves:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Identifying UBOs<\/strong> for complete transparency regarding the actual beneficiaries.&nbsp;<\/li>\n\n\n\n<li><strong>Identifying Politically Exposed Persons (PEPs)<\/strong>, who present increased risks.&nbsp;<\/li>\n\n\n\n<li><strong>Monitoring sanctions and economic restrictions<\/strong> issued by various governments.&nbsp;<\/li>\n\n\n\n<li><strong>Monitoring the company's reputation<\/strong> through media coverage.&nbsp;<\/li>\n\n\n\n<li><strong>Analyzing transactions<\/strong> to detect any suspicious activity.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">KYB - The rise of automation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Manual business verification is time-consuming and prone to errors. With the rise of automated solutions, KYB checks have become significantly simplified. Digital tools, such as electronic identity verification (eIDV), accelerate this process by utilizing public and private databases for quick and reliable checks.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The growing demand for automated KYB tools continues, with increasingly intelligent solutions that optimize compliance, reduce fraud risks, and enhance overall business efficiency.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">RollingFunds is part of this ongoing evolution, offering advanced KYB solutions that enable compliance and risk management teams to improve productivity, ensure effective traceability, monitor processes in real time, and make optimal use of corporate data. <a href=\"https:\/\/www.rolling-funds.com\/en\/contact-us\/\" data-type=\"link\" data-id=\"https:\/\/www.rolling-funds.com\/nous-contacter\/\">Contact us<\/a> below to find out more about our KYB solution.<\/p>","protected":false},"excerpt":{"rendered":"<p>RollingFunds is part of this ongoing evolution by offering advanced KYB solutions that enable compliance and risk management teams to enhance their productivity, ensure effective traceability, monitor processes in real-time, and optimally leverage business data. Contact us below to learn more about our KYB solution.<\/p>","protected":false},"author":7,"featured_media":2013,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[16],"tags":[17],"class_list":["post-2009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-kyb"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts\/2009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/comments?post=2009"}],"version-history":[{"count":3,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts\/2009\/revisions"}],"predecessor-version":[{"id":4251,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/posts\/2009\/revisions\/4251"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/media\/2013"}],"wp:attachment":[{"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/media?parent=2009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/categories?post=2009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rolling-funds.com\/en\/wp-json\/wp\/v2\/tags?post=2009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}