KYC vs KYB vs AML: what's the difference?

KYC (Know Your Customer) verifies the identity of an individual. KYB (Know Your Business) verifies a company and the people who own or control it. AML (Anti-Money Laundering) is the broader programme of controls — including KYC and KYB — that regulated businesses run to detect and prevent financial crime.

KYC — Know Your Customer

KYC is the process of confirming that a customer is who they say they are before, and during, a business relationship. In practice it combines document checks, biometric checks and data validation:

• Read the identity document with ID document OCR.
• Confirm a real, present person with liveness detection.
• Bind the person to the document with 1:1 face matching.

KYB — Know Your Business

KYB applies the same "know who you're dealing with" principle to organisations. It verifies the legal entity, its registration and status, and — critically — its beneficial owners (the individuals who ultimately own or control it). Those individuals are then themselves KYC-checked. KYB is what stops a shell company being used to hide the real party behind a transaction.

AML — Anti-Money Laundering

AML is the umbrella. It is the set of legal obligations and internal controls a regulated business must run to prevent money laundering and terrorism financing. KYC and KYB are the identity-checking parts of an AML programme, which also includes ongoing monitoring, risk assessment, and reporting to the regulator. In Australia the AML/CTF regime is overseen by AUSTRAC.

How they fit together

TermVerifiesQuestion KYCAn individualIs this person who they claim to be? KYBA business + its ownersWho really owns and controls this entity? AMLThe whole programmeAre we detecting and preventing financial crime?

Think of it as nested: AML is the programme, KYC and KYB are the identity checks inside it, and identity verification technology is what makes those checks fast and reliable.

Frequently asked questions

Is KYC part of AML?

Yes. KYC is one component of a wider AML/CTF compliance programme, alongside ongoing monitoring, risk assessment and regulatory reporting.

What is the difference between KYC and KYB?

KYC verifies an individual person; KYB verifies a business entity and identifies the individuals who beneficially own or control it (who are then KYC-checked).

Who regulates AML in Australia?

AUSTRAC is Australia's AML/CTF regulator. Obligations vary by sector and are expanding to more industries — check your specific requirements. This is general information, not legal advice.

How does identity verification support KYC?

It automates the identity-checking step: OCR reads the document, liveness confirms a live person, and 1:1 face matching binds the two — see the use cases.