What Is KYB (Know Your Business)?
Due diligence process to verify a business entity's identity, ownership, and legitimacy.
Detailed Explanation
Required by payment processors and financial institutions before onboarding. KYB checks beneficial owners, registration status, and sanctions lists.
Example
The payment platform requires KYB verification before enabling a new vendor to receive payouts.
Why It Matters
Ensures compliance with anti-money-laundering rules and reduces fraud risk in vendor payments.
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