KYB and RGPD: reconciling business audit and data protection

KYB and GDPR: an essential balance for B2B compliance

The KYB (Know Your Business) is based on the collection and processing of sensitive business data, their managers and beneficial owners. At the same time, the RGPD imposes the protection of this data, with strict obligations for any company operating in Europe or processing the data of European citizens.

Reconciling KYB and RGPD is a strategic challenge: it is about verify partners comprehensively and reliably, while limiting the use and dissemination of data personal to remain within the legal framework.

The main obligations of companies

To comply with both regimes, businesses must respect several fundamental principles:

1. Limiting collection
   • Collect only the information necessary to verify the company and its managers
   • Avoid the collection of irrelevant or sensitive personal data
2. Transparency and consent
   • Clearly inform companies and managers of the data collected, their use and their retention period
   • Obtaining explicit consent for the processing of sensitive information, in particular for UBOs (Ultimate Beneficial Owners)
3. Security and storage
   • Protect official documents and personal data with secure systems
   • Restrict access to compliance and audit teams only
   • Ensuring data encryption in transit and at rest
4. Minimization and anonymization
   • Keep only data useful for compliance and traceability
   • Anonymize information when possible to limit risks in the event of a leak
5. Right of access and portability
   • Allow companies and managers to consult, correct or request the deletion of their data
   • Documenting requests to remain in compliance with the GDPR

Concrete challenges

1. Multiple document collection
   Businesses often need to retrieve Kbis, articles of association, identity documents, and financial information. Each document contains sensitive personal data.
2. Automated verification vs privacy
   Automation via OCR or AI speeds up KYB but requires additional security guarantees to remain RGPD-compliant.
3. Ongoing monitoring and updating
   KYB does not end with initial onboarding: changes in the company structure must be monitored, which involves the regular processing of personal data.

Best practices for reconciling KYB and GDPR

1. Secure automation
   • Use solutions like Dataleon to automate verification while respecting data protection
   • Detect anomalies and inconsistencies without exposing sensitive data
2. Centralized data management
   • Store information in a single, secure and trackable platform
   • Easily control access and generate audit reports
3. Dynamic regulatory monitoring and compliance
   • Update processes according to changes in the GDPR and the AML/KYB directives
   • Integrate new requirements as soon as they are published
4. Raising awareness among teams
   • Train compliance and operational teams in data protection issues
   • Develop an internal culture of security and confidentiality

The risks of a bad KYB/GDPR combination

• GDPR sanctions : fines of up to 20 million euros or 4% of global annual turnover
• Loss of trust from B2B partners : compromised image in the event of a leak or poor data management
• KYB non-compliance : additional sanctions, fraud risks and financial losses
• Operational risk : increased complexity if data is scattered or poorly secured

Conclusion

La KYB and RGPD compliance is not only a legal requirement: it is a strategic lever to secure your B2B partnerships and strengthen trust.

Modern solutions like Dataleon allow you to:

• Automate business collection and verification
• Centralize data in a secure environment
• Ensuring ongoing compliance with KYB, KYC, AML, and GDPR

In this way, businesses can secure their transactions, reduce fraud risks, and protect the privacy of their partners, all while remaining competitive in a complex and evolving regulatory environment.

‍