KYB

The process of verifying the identity, structure, and legitimacy of corporate entities. KYB requires confirming company registration, identifying directors and shareholders, and establishing the UBO (Ultimate Beneficial Owner). More complex than KYC because corporate structures can involve multiple layers of ownership. Regulated under AML directives (FATF Recommendation 24) and the EU's 5th AML Directive.

A standard KYB check involves five steps: (1) verify the company is registered and active in the official company registry (e.g., Companies House for UK, INPI/RCS for France, GLEIF for international entities); (2) confirm the registered address, legal form, and incorporation date; (3) identify all directors and authorized signatories; (4) identify the UBO — the natural person(s) ultimately owning or controlling the entity (typically those holding >25% of shares or voting rights); (5) screen all identified individuals and the entity against sanctions and PEP lists.

Complex corporate structures — holding companies, special purpose vehicles (SPVs), trusts, nominee shareholders — are specifically designed for legitimate tax and governance purposes but can also obscure beneficial ownership. KYB analysts must "look through" these layers until a natural person is identified. In cases where no individual holds >25%, the senior managing official (CEO, director) is typically treated as the UBO by default.

SYNTA-IQ provides KYB-relevant data across 11+ countries, including company registration status, director information, and UBO data where publicly available. For France, the INPI data provides beneficial ownership information filed with the Registre des Bénéficiaires Effectifs (RBE). For Luxembourg, GLEIF LEI data provides parent-subsidiary mapping. For the UK, Companies House PSC (Persons with Significant Control) register provides direct UBO disclosure.

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