Know your Business
- Carly
There is a separate Use case KYC (Know your Customer) for the Consumers.
Summary
KYB means Know Your Business and is a standard due diligence process used by financial institutions and other financial services companies to assess and monitor customer risk and verify a customer's identity during the onboarding process. Onboarding processes help prevent and identify money laundering, terrorism financing, and other illegal corruption schemes. KYC process includes ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification. Banks must comply with KYC regulations and anti-money laundering regulations to limit fraud. KYC compliance responsibility rests with the banks.
The Know Your Client or Know Your Customer ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge, and financial position. KYB protects both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and cannot include in their client's portfolio. KYB compliance typically involves requirements and policies such as risk management, customer acceptance policies, and transaction monitoring.
See below for some Regulations for KYB.
Use case 1 a
Business employee/officer requests a service from a Financial Institution
Triggering event | Business’s request for Financial Service, e.g. opening a Bank Account |
Actors | Business employee/officers, Financial Service employee |
Preconditions | Business has some information on what is required to open a bank account |
Post conditions | Business’’s request is accepted |
Scenario | The requestor could be in person at the bank |
Alternate scenario | The requestor could be online using the web or mobile |
Related use case | The Financial Institution reaches out to the business with marketing material to open a bank account with some attractive offers like no fee, low rates etc. |
Notes |
Use Case 1 b (Employee or officer of the Financial Institution)
Business employee/officer requests a service from a Financial Institution
Triggering event | Business’ request for Financial Service, e.g., opening a Bank Account |
Actors | Business employee/officers, Financial Service employee/officer |
Preconditions | Business has some information on what is required to open a bank account |
Post conditions | Business’ request is accepted |
Scenario | The requestor could be in person at the bank |
Alternate scenario | The requestor could be online using the web or mobile |
Related use case | The Financial Institution reaches out to the business with marketing material to open a bank account with some attractive offers like no fee, low rates etc. |
Notes |
Use case 2 a
The Financial Institution requests KYC documents from the business. (During implementation this could be an Epic (collection of related user stories) with a User Story for each type of document/s verified)
Triggering event | Financial Institution requests KYB documents from business |
Actors | Personnel at Financial Institution, Business employee/officers |
Preconditions | Financial Institution receives request from Business |
Post conditions |
|
Scenario | Verification of documents could be in person at the Financial Institution |
Alternate scenario | Verification could be online which will require additional liveness check |
Related use case | Business requests Financial Service from a Financial Institution |
Use Case 2 b (Employee or officer of the Financial Institution)
The Financial Institution requests KYB documents from the employee/officers at the requesting Business to verify that they can act on behalf of the Business. (During implementation this could be an Epic (collection of related user stories) with a User Story for each type of document/s verified)
Triggering event | Financial Institution requests KYB documents from business |
Actors | Personnel at Financial Institution, Business employee/officiers |
Preconditions | Financial Institution receives request from Business |
Post conditions |
|
Scenario | Verification of documents could be in person at the Financial Institution |
Alternate scenario | Verification could be online which will require additional liveness check |
Related use case | Business requests Financial Service from a Financial Institution |