What is Know Your Business (KYB)?
Know Your Business (KYB) is a verification standard that confirms the legal status of a company and its compliance with Anti Money Laundering and other regulations. We partner with Stripe and Unit to facilitate the Forma Card and Deposit Accounts, and these important details will give them and their bank partners better visibility into account holder information and help keep Forma and our customers more secure.
We recognize that the verification requires submitting sensitive information, we can assure you that direct input is the most secure method as Forma, Stripe, and Unit follow and adhere to strict compliance and security guidelines.
Why is KYB needed?
In short, it is required to comply with financial laws. To help the government fight financial crime, federal regulation requires certain financial institutions to obtain, verify, and record information about the beneficial owners of legal entity customers. Legal entities can be abused to disguise involvement in terrorist financing, money laundering, tax evasion, corruption, fraud, and other financial crimes.
Requiring the disclosure of key individuals who own or control a legal entity (i.e., the beneficial owners) helps law enforcement investigate and prosecute these crimes.