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What is KYB (Know Your Business) and why it matters

Know Your Business (KYB) is a critical part of the compliance process that helps verify the identity and legitimacy of the businesses we support. It ensures a secure, trustworthy environment for payroll operations and partnership activities.

Rachel Fisch avatar
Written by Rachel Fisch
Updated over a month ago

Why KYB matters

KYB is required to:

  • Comply with financial regulations

  • Reduce the risk of fraud, money laundering, and illegitimate business activity

  • Confirm that each client is a registered and verifiable entity

By verifying the legal business name and registration number, we help protect all parties involved and establish a foundation of transparency and trust.

When KYB is triggered

KYB verification is automatically triggered when a client enters both:

  • Their legal business name

  • Their business registration number

This real-time check allows for early detection of inconsistencies or potential compliance risks.

How to monitor KYB status

You can track KYB status directly in Paiday Payroll:

Navigation:
Company > Business entity > KYB & AML

There, you’ll see:

  • Real-time verification status

  • Any flags or pending items that require action

  • Immediate alerts if something needs follow-up

💡 Note: KYB must be fully completed before the client can run live payroll.

What to do if there's a flag

If a KYB flag appears:

  • You'll be notified in Paiday Payroll

  • Clear instructions will be provided, including:

    • When to contact the client

    • What documentation or corrections are required

Working through these steps ensures a smooth and compliant onboarding process for your clients.

Disclaimer: This article is not intended to provide tax, legal, benefits, financial, or HR advice. Since laws and regulations are subject to change and may differ by location, please consult a legal or HR professional for personalized guidance.

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