Compliance
KYB (Know Your Business)
Know Your Business
Definition
The corporate-counterparty equivalent of KYC, applied to operator due diligence on suppliers, affiliates, and B2B partners.
Key takeaways
- KYB is the corporate equivalent of KYC, applied to suppliers, affiliates and B2B partners.
- It covers company registration, beneficial owners, sanctions and PEP screening, AML controls and ownership changes.
- Regulators, banks and payment partners increasingly expect KYB rigour throughout an operator's supply chain.
Why it matters
KYB has become an increasingly serious compliance discipline as regulators have pressed operators on accountability for partners and suppliers. The discipline mirrors KYC for corporate counterparties: verifying corporate registration, identifying beneficial owners, screening against sanctions and PEP lists, assessing AML controls, and ongoing monitoring of changes in ownership or control. The work is operationally substantial when operators have hundreds of supplier and affiliate relationships.
The regulatory drivers are layered. AML directives in major jurisdictions require operators to apply customer due diligence to corporate as well as individual customers, which captures B2B partner relationships. Licensing conditions in markets like the UK explicitly require operators to manage supplier and partner risks. Banking and payment relationships are increasingly conditioned on KYB rigor through the supply chain. The result is dedicated KYB teams in larger operators and growing tooling support from compliance technology providers.
Frequently asked questions
How does KYB differ from KYC?
KYC verifies and monitors individual customers (players). KYB verifies and monitors corporate counterparties (suppliers, affiliates, partners). The underlying compliance logic is similar (identification, beneficial ownership, sanctions screening, ongoing monitoring) but applied to corporate rather than individual subjects.
Is KYB a regulatory requirement?
Increasingly yes. AML directives in major jurisdictions require customer due diligence on corporate as well as individual customers. Operator licensing conditions in markets like the UK explicitly require risk-based assessment of partner and supplier relationships. The trajectory is toward more formal KYB requirements.