KYB checks and compliance: how regulators oversee businesses

KYB regulatory controls: a major challenge for compliance

La business verification (KYB) is today a fundamental pillar of the regulatory compliance in all B2B sectors. It no longer concerns only banks and fintechs, but also marketplaces, insurances, payment companies and companies working with international partners. European regulators, through AML/KYC guidelines, require all businesses to monitor and document the identity, legal existence, and risks associated with their partners.

The KYB is part of a larger framework of fight against fraud, money laundering and terrorist financing. Its supervision is essential to prevent fraud, secure B2B transactions and ensure transparency.

How regulators oversee KYB

1. Regular audits and inspections

Regulators conduct systematic audits to verify KYB compliance. These audits include:

• Audit of internal B2B onboarding processes
• Analysis of procedures for collecting and processing official documents
• The evaluation of the traceability of beneficial owners (UBO)
• Compliance with AMLD guidelines and national regulations

Fintechs and B2B platforms are particularly closely monitored, as they are exposed to a high number of partners and transactions.

2. Audit of internal processes and reporting

Businesses should document each stage of the KYB verification:

• Collection of official documents (statutes, Kbis, identity documents of directors)
• Identification and validation of beneficial owners
• Financial and geopolitical risk analysis
• Information archiving for internal and external audits

This information is crucial for regulatory reports, which must be sent to regulators according to local requirements.

3. Ongoing monitoring and alerts

Beyond the initial verification, regulators impose a continuous monitoring commercial partners:

• Detecting changes in business structure
• Suspicious transaction tracking and AML alerts
• Updating beneficial ownership information

This dynamic monitoring reduces the risk of fraud and ensures that businesses remain compliant over time.

Best practices for complying with KYB checks

For businesses, KYB compliance is not only a legal requirement, it is also a a lever for performance and B2B trust. Here are the best practices to adopt:

1. Automate verifications
   • Use OCR and AI software to validate official documents and detect anomalies
   • Reducing human errors and speeding up B2B onboarding
2. Centralize KYB data
   • Store all information in a single, secure system
   • Facilitate partner audits and traceability
3. Training compliance teams
   • Raise staff awareness of KYB and KYC obligations
   • Train in AMLD guidelines and new regulations
4. Implement regulatory monitoring
   • Follow the evolution of the AML and KYB directives at European and international level
   • Adapt processes in real time to remain compliant

The risks in case of non-compliance

Failure to comply with KYB checks can have serious consequences:

• Financial sanctions : significant fines for non-compliance with AML/KYB obligations
• Legal risks : civil or criminal proceedings for managers
• Reputation damage : loss of trust among partners and customers
• Operational risk : undetected fraud that can lead to financial losses and business disruptions

Conclusion

Les KYB regulatory checks are a key factor in securing B2B transactions. To remain competitive, businesses need to adopt automated solutions, centralize data, and implement continuous monitoring. Strict adherence to AML/KYC/KYB guidelines not only protects against sanctions, but also strengthens partners' trust and the company's reputation.

The integration of digital solutions like Dataleon makes it possible to anticipate audits, document all verifications and ensure complete compliance, while simplifying B2B onboarding.

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