KYB: What, Why, and How is it Used by KUNA Pay?

Know Your Business (KYB) is an exceptionally important process. In fact, it is obligatory for many companies, as it verifies the identify of any business customers. But while it’s widely used – including by us here at KUNA Pay – many don’t understand the whats and whys of KYB. So, let’s take a deeper dive into KYB and learn all about it!

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What is Know Your Business?

Know Your Business is a regulatory requirement that mandates businesses to know the identities of their customers. The overall goal of KYB is to understand who has ultimate beneficial ownership, which will reveal who really benefits from the business’s financial activities. The process should also reveal whether a business is subject to sanctions or associated with corruption or other types of criminal activity.

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The requirements of KYB differ from jurisdiction to jurisdiction, but some of the data commonly required includes the company address, registration documents, licensing information, and the identities of the company’s owners and directors.

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The KYB process isn’t a one-off process. Instead, it should be carried out periodically throughout the relationship with the customer. This will allow firms to identify whether the status of the customer has changed.

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Why is Know Your Business Important?

If you’re not conducting proper KYB, you’re opening yourself up to assisting unlawful businesses with their acts. For example, you could be helping a fraudster launder money, or even assisting in the process of funding terrorism.

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It’s also important from a legal perspective, as going through the KYB process is a legal requirement in many jurisdictions, including the United States. So, failing to carry out KYB checks could land your business is legal trouble.

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How KUNA Pay Uses KYB

At KUNA Pay, we utilize a strong onboarding process to verify all merchants before they can start using the platform. The result? Only legitimate, legal businesses are granted access to KUNA Pay, significantly lessening the risk of any fraudulent activities.

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We use a three-step process to onboard every merchant:

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1. All merchants must provide specific details when registering, namely their personal information, email address, and password.
2. The merchant is then required to create a company and select the main currency they’ll use, plus choose a name for the company.
3. Finally, the platform will work to establish the identity of the merchant by requesting further details, which can include shareholder data and company information.

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Only once we’ve successfully verified the merchant will they be granted permission to use the KUNA Pay platform.

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By working diligently to comply with KYB regulations, KUNA Pay ensures that users assume less risk when utilizing the platform, creating a better experience overall.

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If you’d like to learn more about the ways in which the KYB process is used by Kuna PAY, please don’t hesitate to get in touch with a member of our team today.

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