KYB Procedure

General information and description of the KYB verification procedure and AML screening
KYB procedure is designed to verify counterparties, reduce risks of working with fraudulent entities and comply with regulatory requirements.
Generally speaking, the KYB procedure involves the following steps, yet may have additional or different step depending on the specific requirements of the company and the regulations in their jurisdiction.
  1. 1.
    Company registration: a company registers and creates an account.
  2. 2.
    Request for information: information is requested from the company, such as the company name, registration number, and details about the company's legal structure and ownership.
  3. 3.
    Collection of documentation: documentation is requested from the company to verify the information provided, such as business registration documents, tax ID numbers, financial statements, and other relevant documents.
  4. 4.
    Identity verification: the identities of the company's beneficial owners and key personnel will be verified through a variety of methods, such as facial recognition technology and document verification.
  5. 5.
    Risk assessment: the risk level associated with the company is assessed based on factors such as its location, industry, and ownership structure.
  6. 6.
    Compliance checks: various compliance checks are conducted to ensure that the company is not involved in any illicit activities such as money laundering or terrorist financing.
  7. 7.
    Approval or rejection: the company's application is either approved or rejected based on the results of the KYB process.
  8. 8.
    Ongoing monitoring: the company's activities are continually monitored to ensure ongoing compliance with AML and CTF regulations.

Auto KYB Verification

The Auto KYB checks include AML Screening and Automated Registry Check. They are performed to collect information about both companies and their beneficiaries, screen them for sanctions, adverse media mentions, watchlists presence and other databases.

AML Screening

In AML Screening a company is screened for sanctioned and compromised persons upon onboarding and on an ongoing basis.
There are two database options to choose from:
  • Comply Advantage
  • Refinitiv World Check One
The results of matching the applicant against databases are shown in the company report which contains the profile data, search settings and the list of the sources where matches have been found.
If matches have been found, the final decision can be made by the legal officer or delegated to your team.

Automated Registry Check

Automated Registry Check is an additional KYB check verifying information about the company and its beneficiaries through the global and local registries. The check is performed during onboarding and can be run manually to keep information up-to-date.
The results are shown in the company check and may contain the following data:
Type of Results
Provided information
Company Information
  • Company name
  • Employer Identification Number (EIN) (if any)
  • Registration number
  • Status (Active / Inactive)
  • Company Type
  • Nature of business
  • Date of incorporation
  • Registered office address
  • Company structure
Company Officers
  • Full name
  • Date of birth
  • Nationality
  • Country
  • Occupation
  • Appointed on
  • Correspondence address
  • Role
  • Status
Persons With Significant Control
  • Full name
  • Date of birth
  • Nationality
  • Country
  • Occupation
  • Appointed on
  • Correspondence address
  • Nature of control
  • Status
Source of Information
Link to a registry from which data is taken.

Full KYB Verification

The Full KYB includes the Auto KYB checks, the Ownership and Management Structure Check along with the Intermediate Shareholder Check. They are performed to determine the full company structure, percentages of ownership and verify all beneficiaries using KYC checks.

Ownership and Management Structure Check

The Ownership and Management Structure Check includes establishing company structure, approving ownership and verifying identity of UBOs, Shareholders, and Representatives. A custom flow can be created based on the requirements.
The results of the check are shown in the KYB applicant profile and indicated in the company report. They contain the company structure, company details, and Beneficiaries details.

Intermediate Shareholder Check

The Intermediate Shareholder Check is part of the Full KYB verification. During the check, the parent and intermediate companies are verified retracing the Full KYB steps.
The Intermediate Shareholder Check cannot be performed without the Ownership and Management Structure Check.
The results of the check are shown in the applicant KYB profile and the company report.