KYC, KYB, KYP Explained: Key Differences in Identity Verification Processes

VFAQ: KYC, KYB, KYP: What is the Difference Between These Regulatory Compliance Processes?

Regulatory compliance is about more than just following laws. It ensures that businesses operate responsibly while protecting individuals from fraud, theft, and misuse of data. Identity verification processes like KYC, KYB, and KYP play a key role in meeting these standards. Let's break them down:
  1. Know Your Customer (KYC) - refers to the process businesses use to confirm the identities of their customers. It is most commonly applied in the financial sector, where banks, payment providers, and credit institutions must ensure they work with legitimate individuals. 
  2. Know Your Business (KYB) - focuses on verifying the identities of businesses rather than individuals. This process is vital when organizations must confirm that they are engaging with legitimate companies or entities. 
  3. Know Your Patient (KYP) - is commonly used in the healthcare sector to verify patient identities. Ensuring the accuracy of patient information helps healthcare providers deliver better care, avoid medical errors, and prevent healthcare-related fraud. 
All of these processes are crucial for preventing financial and identity fraud, ensuring compliance with regulations, and protecting businesses, individuals, and institutions from illegal activities. 

Read our blog KYC, KYB, KYP: What is the Difference Between These Regulatory Compliance Processes? or watch the video below to learn more. 


    • Related Articles

    • VFAQ: AML and KYC Solutions

      With financial crime on the rise and tighter regulations, AML (Anti-Money Laundering) and KYC (Know Your Customer) solutions are essential. AML and KYC solutions are tools and processes that help businesses verify customer identities, assess risk, ...
    • VFAQ: Traditional vs. Modern KYC Verification

      KYC (Know Your Customer) helps businesses verify the identity of their clients, which reduces the risk of fraud, money laundering, and other illegal financial activities. Traditional KYC relies on manual document checks such as physical or digital ...
    • Vlog: Business Compliance: What is KYC + 10 Industries Implementing KYC

      KYC or Know Your Customer is a process used by businesses to confirm that their customers are who they say they are. The goal is to prevent fraud, identity theft, and even bigger threats like money laundering, terrorist financing, and other illegal ...
    • Vlog: The Role and Importance of KYC in the Crypto Industry

      Crypto KYC, or Know Your Customer, is an essential requirement for centralized exchanges to verify the identities of their users. It plays a crucial role in preventing the misuse of cryptocurrencies for money laundering, tax evasion, and other ...
    • VFAQ: 10 TCPA Compliance Checklist Items

      Lead generation companies are essential for helping businesses grow by identifying and attracting potential customers. However, while collecting valuable contact information for leads, these companies must adhere to TCPA regulations. Failure to ...