# KYC, KYB and AML explained for fintechs in Africa | Konnect ID

> KYC verifies people, KYB verifies companies and AML screening checks both against watchlists. What each one does, and how they fit in one onboarding flow.

Source: https://id.konnect.network/blog/kyc-kyb-aml-explained · Language: en · Also in fr: https://id.konnect.network/fr/blog/kyc-kyb-aml-explained · ar: https://id.konnect.network/ar/blog/kyc-kyb-aml-explained

## KYC, KYB and AML: three jobs, one flow.

The three acronyms are often used as if they meant the same thing. They do not. Here is what each one covers, and how they work together when you onboard customers, merchants and agents.

## Key takeaways

- KYC verifies people, KYB verifies companies and their beneficial owners.
- AML screening checks both against sanctions, PEP lists and adverse media; a match means human review, not refusal.
- Wallets, merchant accounts and agent networks combine the three differently.

## 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.

## FAQ

### Is AML screening part of KYC?

It is usually run in the same onboarding flow, but it answers a different question: not who the person is, but whether they appear on a list that calls for extra care.

### Who are beneficial owners?

The natural persons who ultimately own or control a company, directly or through other entities. Thresholds vary by country; our KYB guide explains them.

_Published on 2026-10-27 by The Konnect ID team._

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