What is KYC and KYB? Business verification explained simply
In this article
When a business signs up for almost any financial service, it is asked to prove who it is. You share the company’s registration details, explain who owns and runs it, and the directors confirm their identity. These steps are called KYB and KYC.
It is natural to wonder why all this is needed, what exactly is being checked, and what happens to your information. Verification can feel like a hurdle, but it exists to protect your business as much as anyone else.
This guide explains what KYB and KYC mean, why financial services use them, what your business and its directors usually need to provide, and how to get through verification smoothly.
Definition
What is KYB?
Why verification exists
Financial services are required to know who they are dealing with. Verification makes it much harder for criminals to open accounts under false company names, launder money or commit fraud.
It also protects your business. When every account is tied to a verified business, it becomes harder for someone to impersonate your company, and payments between verified customers are more trustworthy.
Who carries out the checks
Vav is a technology platform, not a bank, and does not hold customer money. Accounts, payments, cards and conversion are provided by licensed partners, and verification is part of meeting their requirements. Anti-money laundering (AML) and sanctions checks also apply. You can read more in our AML and KYC policy.
What KYB involves
Business verification looks at the company itself and the people behind it.
Company details
You will be asked for information about the business, such as its registered name and details, and what it does.
Owners and controllers
KYB covers owners holding 10% or more of the business, as well as the people who control it. This helps make sure it is clear who ultimately benefits from and runs the company.
Further checks
Additional compliance checks may apply depending on your industry and the countries your business operates in.
Identity checks for directors and authorised users
Directors and anyone authorised to use the account verify their own identity. This is the KYC part of business verification, and it usually takes a few minutes for each person.
- An identity document. A clear photo of a valid government-issued ID.
- A selfie or liveness check. A short check to confirm the person is real and matches their document.
- Proof of address, sometimes. A document showing where they live may be requested.
Everyone who verifies must be 18 or over.
If you are setting up your company’s account, our business page explains what Vav offers businesses.
How to get verified smoothly
Most verification delays come from small, avoidable issues.
- Use valid documents. Check that identity documents have not expired.
- Take clear photos. Avoid glare, blur and cropped edges.
- Match your details. Enter the business’s name and each person’s details exactly as they appear on the documents.
- Respond to follow-ups. If more information is requested, provide it promptly. Further checks may apply.
Accounts are not available without verification, so it is worth completing it before your business needs to be paid. That way, when an overseas client asks for your payment details, you are ready. Our guide to how businesses in Pakistan get paid by overseas clients shows how verification fits into getting paid, and our guide to using virtual cards for business subscriptions and ads explains what you can do once you are verified.
Staying safe during verification
Because verification involves company and personal information, scammers sometimes imitate it.
Recognise the warning signs
- Messages asking your business to “re-verify” through a link you did not expect.
- Requests to share a password or one-time codes.
- Pressure to act immediately or lose access to your business’s money.
Vav will never ask for your password or one-time codes. If you are unsure whether a message is genuine, do not click any links. Open the Vav app directly or visit our help centre.
To learn more about how Vav protects your business’s account and data, visit our security page.
Frequently asked questions about KYC and KYB#
Why does my business need to be verified to use Vav?
Verification is required by the licensed partners who provide accounts, payments and cards, and it helps prevent fraud and financial crime. Accounts are not available without verification.
What does my business need for KYB?
Businesses provide company details, such as the registered name and what the business does, and information about owners holding 10% or more and the people who control the business.
Who in the business needs to verify their identity?
Directors and authorised users verify their identity. This usually means an identity document and a selfie or liveness check, and sometimes proof of address. They must be 18 or over.
Will we have to verify again later?
You verify once when you sign up. Further checks may apply from time to time, for example if your business's details change or more information is needed.
Will Vav ever ask for a password or one-time code?
No. Vav will never ask for your password or one-time codes. If someone does, do not share them.
This article is for general information only and is not financial, legal or tax advice. Vav is not a bank. Vav services are provided together with third-party providers; availability, eligibility, supported currencies, payment rails and features vary by country, account type and provider, and all accounts are subject to verification. Currency conversion carries risk — read our Risk Disclosure. See our Terms of Service and FAQ for more.
Vav Editorial Team
Editorial team at Vav
The Vav Editorial Team writes plain-language guides to global accounts and virtual cards for businesses that get paid and pay suppliers across borders. Every guide is checked against how the Vav app actually works, and we update articles when products change.
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