KYC: knowing your customer
KYC confirms that a person is who they claim to be: an identity document that is genuine and valid, a live person in front of the camera, and a face that matches the document. The depth of the check usually depends on the account level, with higher limits requiring stronger evidence.
KYB: knowing the business
KYB does the same for a company: its registration documents, the person acting for it and their authority to sign, and above all its beneficial owners, the people who ultimately own or control it. Each of those people then goes through KYC.
AML screening: checking against watchlists
AML screening compares people and companies with sanctions lists, lists of politically exposed persons and adverse media. A match does not mean refusal: it means a human looks at the case before it goes further.
How they fit together
- A consumer wallet: KYC, then AML screening, with stronger checks as limits grow.
- A merchant account: KYB on the company, KYC on the legal representative and beneficial owners, AML screening on all of them.
- An agent network: KYB on the agent business, KYC on each operator, and periodic refresh.
