knowyourbusiness

Know Your Business refers to a set of processes, resources, and initiatives aimed at verifying information about a business entity to assess legitimacy, ownership, and regulatory compliance. The overarching goal is to reduce fraud, manage risk, and enable informed commercial decisions in business-to-business and consumer interactions. Know-your-business efforts typically involve collecting and confirming data such as legal name, registration number, jurisdiction, physical address, ownership structure, beneficial owners, licenses, financial health indicators, and any regulatory sanctions or enforcement history.

Applications include consumer protection in online marketplaces, supplier verification in procurement, partnership due diligence, and investor or lender assessments. In supply chains, KYB activities complement know-your-customer (KYC) and know-your-supplier programs by adding a business-facing due diligence dimension. Information gathered through KYB processes may be used to screen counterparties, monitor ongoing compliance, and support risk-based decision making.

Common sources of information include government company registries and filings, licensing authorities, court records, financial statements, credit and business intelligence reports, and disclosures provided directly by the business. Data quality and accessibility can vary across jurisdictions and providers, which may impact accuracy and timeliness.

Limitations and challenges include data gaps, privacy and consent considerations, inconsistent ownership definitions, and the potential for outdated or manipulated information. Effective KYB practices emphasize transparent data sources, proportional data collection, and adherence to applicable laws and regulations.

Know-your-business initiatives may be run by government agencies, private compliance firms, or data platforms, and are often part of broader risk-management or regulatory compliance programs. See also: Know Your Customer, corporate registries, due diligence.