Glossary
KYC vs KYB: What Do They Actually Check
KYC and KYB sound like the same idea applied to different things, and in a sense they are, but they check different facts and pull from different sources. This guide explains what each one verifies, how a company's checks differ from a person's, and where the data behind each actually comes from.
- KYC verifies a person, KYB verifies a business
- A company check reaches into its directors and owners too
- Registry data, not a form the client fills in, backs KYB
What does KYC check
Know your customer, KYC, verifies that a person is who they claim to be. In practice that usually means checking a government-issued document, a passport or a national ID, sometimes with a biometric step, a photo or a short video, matched against the document's photo. The result is a confirmed name, date of birth and document number tied to a real, physically present person, rather than a name someone simply typed into a form. KYC answers one question: is this person real, and are they the person named on this document.
What does KYB check, and how is it different
Know your business, KYB, verifies a company rather than a person: that it is legally registered, active, and matches the details it gave you, its registered name, number, address and status. Because a company cannot present an ID document, KYB relies on official company registries instead, pulling structured records rather than checking a scanned photo. A full KYB check does not stop at the company. It typically extends to the people behind it, the directors, signatories and beneficial owners, because a verified company with an unverified owner tells you very little about who you are actually dealing with.
Where does the underlying data actually come from
KYC draws on the document itself, checked against issuing patterns and, in some methods, a biometric match to the person presenting it. KYB draws on official company registries, which vary by country, a national companies house, a chamber of commerce register, or a commercial credit bureau that aggregates registry filings. That is why KYB results are often faster and more complete for some countries than others: the check is only as good as the underlying registry's coverage and how current its filings are, which differs across the EU.
Do you need both for the same client
For a business client, usually yes. The company itself needs verifying, its registration, status and registered details, and so do the individuals who represent it or ultimately own it, since it is people, not legal entities, who can be sanctioned, be politically exposed or commit fraud. A flow that verifies a company but never looks at its directors has checked the shell and skipped the substance. For an individual client with no company involved, KYC alone covers the identity question, and KYB does not apply at all.
Why it matters when onboarding a client
Getting this pairing wrong shows up later, not immediately: a company passes a registry check, the contract is signed, and only afterward does it turn out one of the directors is a different person than the one who actually signed. Running KYC on the individuals alongside KYB on the company, in the same intake flow that collects the engagement letter, closes that gap at the point where it is cheapest to catch, before the file is opened, rather than during a dispute or an audit months later.
In Braigest
Verify the person and the company in one flow
KYC and KYB run as steps in the same onboarding link, with registry lookups via Companies House, Creditsafe and OpenAPI.ro, available from Practice at €149 a month.
Frequently asked questions
Is KYB just KYC for companies?
Not exactly. KYB checks a company against official registry data, its registration and status, while KYC checks a person against an identity document. A thorough KYB check usually includes KYC on the company's directors and owners too.
Can I run KYC and KYB in the same onboarding flow?
Yes. Both can run as steps in the same onboarding flow, so an individual's identity and a company's registry status are verified together, feeding the same case record instead of two separate checks.
Where does KYB registry data come from?
Official company registries, which vary by country: a national companies house, a chamber of commerce register, or a commercial provider that aggregates and structures registry filings for you automatically, without manual lookups.
Do I need KYB for an individual client with no company?
No. KYB applies only when a business entity is part of the onboarding. An individual client only needs KYC, and only if identity verification is part of your process at all.
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