What Is KYB? (And why you need that for Maash Business)

When you open a personal bank account, you show your ID and prove you're a real person. That's KYC (Know Your Customer).

But what happens when a company wants to open a business account or access cross-border payment services?

Banks and financial platforms can't just ask a company for a selfie. They need to verify that the business itself is legitimate, understand who actually owns and controls it, and assess whether it's safe to work with.

That process is called KYB (Know Your Business).

If you're a founder, freelancer who's incorporated, or small business owner considering services like Maash Business, you'll encounter KYB. It's more complex than personal KYC, and it catches many people off guard.

This guide explains what KYB is, why it exists, what documents you'll typically need, and what to expect as a Sri Lankan business owner navigating this process.

What Is KYB?

Think of it as KYC for businesses, but more complicated.

How KYB Is Different From KYC

KYC is about individual people:

• Name, date of birth, government ID, selfie, proof of address

KYB is about entities and their owners:

• Legal existence (company registration)
• Business address and activity
• Ownership structure
• Ultimate Beneficial Owners (UBOs) – the real people behind the company

Like KYC, KYB sits inside global Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) frameworks. It's mandated in jurisdictions like the EU and US, with similar expectations in Sri Lanka through Financial Intelligence Unit (FIU) guidelines.

The key difference: With KYC, one person needs one ID. With KYB, one company might need multiple documents, verification of several people, and proof of complex ownership structures.

Why KYB Exists

You might be thinking: "Why can't I just show my company registration and be done?"

The answer: shell companies and fake entities are widely used for money laundering, sanctions evasion, and corruption.

Without proper verification, criminals can hide behind layers of companies, and banks become unwitting accomplices to financial crime.

What regulators require

Financial institutions must:

• Verify legal existence and business purpose
• Identify and verify Ultimate Beneficial Owners (usually anyone owning/controlling 25% or more)
• Monitor ongoing activity and file suspicious transaction reports

In Sri Lanka, the FIU emphasizes customer due diligence for entities, beneficial owner identification, and enhanced scrutiny for higher-risk sectors like money services, real estate, and cross-border flows.

The bottom line: KYB protects both platforms and legitimate businesses. It's not bureaucracy—it's a legal requirement that keeps the financial system functioning.

What KYB Usually Checks

Here's what financial institutions typically verify during KYB:

1. Basic Business Identity

• Legal name and trading names
• Country of incorporation
• Registration number and date
• Tax registration number
• Legal form (private limited company, partnership, sole proprietorship)

2. Registration Documents

• Certificate of incorporation or business registration
• Articles of association or equivalent documents

3. Addresses

• Registered address: Legal address on official company register
• Operating address: Where the business actually operates (if different)

4. Business Activity

• Description of main activities and industry
• Expected transaction volumes and geographies

High-risk industries trigger additional checks:

• Money services and fintech
• Gambling
• Real estate
• Import/export with certain countries

5. Ownership and Control

• Directors and shareholder (ownership percentage)
• Ultimate Beneficial Owners (UBOs) – the real people who ultimately own or control the entity

6. Supporting Documents

• Shareholder registry or cap table
• Recent Bank statements from the last 90 days

KYB for Sri Lankan Companies

Let's make this concrete for Sri Lankan business owners.

Common Entity Types

• Sole proprietorships / individual business names
• Partnerships
• Private limited companies (Pvt Ltd)
• Branches of foreign companies

Documents You'll Need for Sri Lanka-registered companies

Registration documents:

• Business Registration Certificate (for proprietorships/partnerships)
• Certificate of Incorporation (for Pvt Ltd)
• Forms filed with Registrar of Companies (directors, shareholders, secretary)

Address proof:

• Registered address from eROC records
• Supporting documents like lease, utility bill, or consent letter – if you have a bank statement with the same address, that would work too!

Tax registration:

• TIN from Inland Revenue Department
• VAT registration if applicable

Directors' and owners' identification:

• NIC or passport for all directors and shareholders
• Proof of address for each individual

Shareholder information:

• Shareholder registry showing ownership percentages
• UBO declaration for anyone owning 25% or more

For Foreign Companies

If incorporated outside Sri Lanka (Delaware C-Corp, Singapore Pte Ltd, etc.), you need equivalent documents from your jurisdiction of incorporation:

• Certificate of incorporation
• Articles of association or bylaws
• Shareholder registry
• Directors' identification
• UBO declarations

Important: Platforms like Maash only require documents from your jurisdiction of incorporation. You don't need both foreign AND Sri Lankan documents, just official paperwork from where your company is legally registered.

Why KYB Feels More Complicated

Different Countries = Different Documents

There's no global "company ID card." A Delaware C-Corp, Singapore Pte Ltd, and Sri Lankan Pvt Ltd all have completely different official forms. Financial institutions must map these to a common compliance framework, which sometimes means:

• Requesting additional documents when formats don't match expectations
• Manual review when automated checks don't cover your jurisdiction
• Follow-up questions to clarify discrepancies

Remote Companies and Proof of Address

Many modern companies operate remotely with a legal registered address (law firm, coworking space) but no traditional office.

KYB often requires proof of your operating address. It means where work actually happens. This can include lease agreements, utility bills, bank statements, or letters from premises owners.

For remote teams:

• You might use a director's home address
• You'll need proper documentation (utility bill, lease, consent letter)
• You may need to explain your remote model

Evolving Document Requests

It's normal for KYB reviews to request additional documents, especially when:

• Activities span high-risk sectors or countries
• Documents are incomplete or inconsistent
• Ownership involves multiple layers

This doesn't mean you've failed. It means the compliance team is doing their job, ensuring they fully understand your structure before approval.

UBO Verification: Don't Overlook This

This is the most important part of KYB, where many applications get stuck.

What Is a UBO?

Ultimate Beneficial Owner (UBO): The real person (or people) who ultimately owns or controls a company, usually anyone owning/controlling 25% or more of shares or voting rights.

Why It Matters

Without UBO checks, criminals hide behind layers of shell companies.

Example:

• Company A (you as director)
• Owned by Company B (shell)
• Owned by Company C (shell)
• Actually controlled by Person X (real UBO)

Global regulations require financial institutions to identify and verify UBOs. Failing this exposes platforms to massive penalties.

For Sri Lankan Founders

For a simple Pvt Ltd:

• You own 100%? You're the UBO
• 50/50 partnership? Both are UBOs
• Three people with 30%, 35%, 35%? All three are UBOs

For complex structures with holding companies:

• Trace ownership through all layers
• Each person with 25%+ control must be identified and verified
• Multiple rounds of documentation may be needed

UBO verification is mandatory. Applications cannot proceed without it.

How KYB Works for Maash Business

Introducing Maash Business: Banking Without Borders

Multi-currency accounts, instant payments to 67 countries, and role-based team controls. Business banking designed for Asia’s cross-border operations.

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Maash Business helps you run your business with multi-currency bank accounts. That is why we need to collect your business information and documents, then pass them to our regulated banking partners who perform the actual KYB checks.

This is because:

• Maash connects you to licensed banks and payment rails
• Those banks must legally verify every business they serve
• Standards must meet each partner's compliance requirements

The Process

1. You provide business information and documents to Maash
2. Maash passes this to banking partners
3. Partners run checks against registries and sanction lists
4. They verify UBOs and run KYC on those individuals
5. Approval comes from banking partners, not Maash directly

Why it takes time:

• Different partners have different processing speeds
• Some jurisdictions require manual review
• Complex structures need additional verification
• High-risk industries trigger enhanced due diligence

Document requirements:

• Only documents from your jurisdiction of incorporation
• Singapore company = Singapore docs; Sri Lankan company = Sri Lankan docs
• No dual documentation needed
• UBO verification always required regardless of jurisdiction

Common KYB Issues (And Solutions)

What to Expect

Timeline

• Simple structures: Few days
• Complex structures: 2 weeks or longer

Communication

• Follow-up questions are normal, not rejection
• Fast responses = faster completion
• Proactively explain unusual structures

Approval Isn't Guaranteed

Applications may be declined due to:

• Prohibited industries or jurisdictions
• Inability to verify ownership
• High-risk profile beyond partner requirements
• Incomplete or inconsistent documentation

KYB as Your Business "ID Check"

KYB can feel like a hurdle when you're eager to start operations. But here's the reframe: KYB is your business showing its ID. It protects you, your partners, and the financial system.

For Sri Lankan and cross-border founders, it's complex because of different document standards, remote operating models, and UBO documentation requirements.

But there're real benefits to do that. Once verified, you can:

• Access cross-border bank accounts and payment rails
• Move money efficiently globally
• Build credibility with clients and vendors
• Operate through legitimate infrastructure, not risky workarounds

Platforms like Maash work with regulated partners so that once you pass KYB, you have access to proper financial infrastructure.

If You're Unsure

Not sure about:

• Why a document is requested?
• How to prove address for remote operations?
• How to document UBOs for your structure?
• Whether your industry will be accepted?

Reach out to Maash Support. KYB's goal isn't to block legitimate businesses, but to understand them well enough to serve them safely and compliantly.

The process might feel slow, but it's what enables you to operate in the global financial system with confidence – knowing your business has been properly verified by regulated institutions.

Disclaimer: This article is for general informational and educational purposes only and does not constitute financial, investment, legal, tax, or other professional advice. Maash is a financial technology platform and is not a bank or investment adviser. Product availability and features may vary by country or region and are subject to eligibility checks, partner terms, and applicable laws and regulations.