KYC, KYB and AML are often used interchangeably, but they describe different things. Understanding how they fit together is the foundation of a sound compliance programme.
KYC — Know Your Customer
KYC verifies the identity of an individual: document checks, biometrics and identity confidence. It answers “is this person real and who they claim to be?” See KYC verification.
KYB — Know Your Business
KYB verifies an organisation: registry status, ownership and the people who control it. It answers “is this company legitimate and who is behind it?” See KYB verification.
AML — Anti-Money Laundering
AML is the overarching programme that KYC and KYB feed into: sanctions and PEP screening, monitoring and reporting, governed by the FATF standards. See AML screening.
How they compare
- Subject — KYC: people · KYB: businesses · AML: both, continuously.
- Question — KYC/KYB: who are you? · AML: are you and your activity high-risk?
- Timing — KYC/KYB: mostly at onboarding · AML: ongoing.
How they work together
A typical flow verifies the individual (KYC), verifies the business and its owners (KYB), screens everyone (AML), then combines the signals into a decision with risk scoring.
Frequently asked questions
Is KYB part of KYC?
They are siblings — KYB extends the same diligence to businesses and their beneficial owners.
Does AML replace KYC?
No. KYC and KYB are inputs to a broader AML programme that also covers monitoring and reporting.
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[…] No. KYC verifies identity; AML is the broader programme of screening and monitoring. See KYC vs KYB vs AML. […]