KYC and KYB
KYC (Know Your Customer) verifies a person's identity. KYB (Know Your Business) verifies a company, its owners and the people who act for it.
Definition
Know Your Customer checks confirm that a payee is who they claim to be. Know Your Business applies the same idea to companies. Banks, payment companies and other businesses covered by anti-money-laundering laws generally must identify their customers, including the beneficial owners of a company.12 Payout platforms decide how much to check on the payee side, from confirmed contact details and sanctions screening to full identity checks.
Many creators invoice through their own company, so a payout program usually needs both checks.
Typical KYC steps
- Collect name, date of birth and address
- Check a government ID document
- Confirm the person is present, for example with a selfie or liveness check
- Screen against sanctions and politically exposed persons (PEP) lists2
What KYB checks
- Company registration in the official register
- Ultimate beneficial owners (UBOs): the people who own or control the company. In the EU, owning more than 25% is the main indicator today, and the AMLR changes this to 25% or more from 10 July 2027.13 Other countries set their own thresholds.
- Directors and authorized signatories
- Business activity and expected payment volume
KYC and conversion
A slow or confusing check makes creators drop out of onboarding. Good KYC flows are mobile-friendly, take a few minutes and ask again only when something changes, a document expires or a periodic review is due.
How Talentir helps
Talentir verifies every business that pays through it (KYB). Payees confirm their email, social account or wallet, and every bank, PayPal and Venmo payout is screened against sanctions lists before it runs. See how Talentir handles compliance
Further reading
Related topics
AML (Anti-Money Laundering)
AML rules require financial companies, and some other businesses, to prevent, detect and report money laundering and terrorist financing.
What is a Merchant of Record?
A Merchant of Record (MoR) is the legal entity that is the counterparty to a transaction and generally carries the tax, invoicing and compliance obligations for it.
Data protection (GDPR)
Payout data contains personal data such as names, addresses, IDs and bank details, so privacy laws like the GDPR usually apply.
Failed and returned payouts
A failed payout is rejected before it reaches the payee. A returned payout reaches the receiving bank or wallet and is sent back.