Lesson 1 · Foundations · Both · 22 min
KYC, KYB & vKYC Foundations
What identity assurance means in product terms—individuals vs businesses, CIP obligations, and when video KYC is enough.
Objectives
- ▸Distinguish KYC, KYB, CIP, and beneficial ownership
- ▸Map onboarding risk tiers to evidence depth
- ▸Explain when vKYC / assisted KYC is appropriate vs full physical KYC
- ▸Write clear acceptance criteria for an onboarding funnel
Know Your Customer (KYC) and Know Your Business (KYB) are not just compliance checklists—they are conversion, fraud, and partnership gatekeepers. Banks and payment partners underwrite your ability to prove who is on the platform. Weak KYC becomes a commercial blocker; overly heavy KYC kills activation.
- KYC: verifying a natural person (name, DOB, address, ID, photo/liveness).
- KYB: verifying a legal entity (incorporation, directors, UBOs, tax IDs).
- CIP (Customer Identification Program): US-rooted framing of collecting and verifying identity attributes at account opening.
- UBO / beneficial ownership: who ultimately owns or controls the entity—critical for KYB and sanctions exposure.
PM framing
Treat onboarding as a risk-based funnel: collect the minimum evidence for the product’s inherent risk, then escalate for higher-risk segments (high ticket, cross-border, cash-intensive merchants).
Key terms
KYCKYBCIPUBOvKYCEDDRisk-based approach