As part of KYB, the bank must identify and verify the beneficial owners who own or control more than 25% of the client company. This can include shareholders, the board of directors but also other legal entities. In this case, said legal entities will also be examined and its beneficial owners will be taken into account.

All identified beneficial owners will then go through the KYC process. This is to check whether they are on any watchlists or otherwise present a higher risk to the bank. For example, if they’re a Politically Exposed Person or if they are affected by sanctions. Based on the results, the bank will assign a risk rating to the business. In accordance with that rating, the bank will perform Simplified, Standard, or Enhanced Due Diligence or refuse the relationship altogether.