Know Your Customer (Business)

KYB

KYB stands for Know Your Business. It is similar to KYC except that KYB focuses on validating business identity vs. consumer identity. The process is similar, but the external third party services and data sources are quite different. For the business, there are a number of required business documents as outlined in the chart below. In addition, the principals of the business (owners and high-level managers) must be fully vetted at Full KYC - Level 2 verification.

Required Documents & Compliance Checks

Mbanq and the partner bank will provide you with the final KYB document requirements, and these will be detailed in your Platform Program Parameters as follows:

Client Type	Products	Standard KYC	EDD Docs
Business	Business Checking Business Debit Card Business Credit Card	Full business name Physical and mailing address Email Phone Number of the Business Business Type (LLC, Corp, etc) Business Line (Industry) Business Registration Details	Business Incoporation Date Certificate of Incorporation Business License Various formation documents (such as: Company Bylaws, business license, articles of incorporation, etc.) Articles of Incorporation Financial Statements

The above are only directional examples, your actual requirements may vary.

KYB Policy

Mbanq and the partner bank will also require that you as the platform will adhere to well defined policies and procedures around the KYB processes. These will be added as an addendum to the Platform Program Parameters.

Business Risk Rating

In order to have an understanding of the money laundering and terrorist financing risks of its business customers, Mbanq has developed a Business Risk Rating. Every new business will be assigned a Risk Rating at the time of onboarding, which can then be changed throughout the relationship as new information about the business is learned or they engage in higher risk activities. Mbanq places businesses in one of following risk categories:

Moderate Risk:

Local Commercial and Franchise Businesses with no additional risk factors such as high-risk occupations, Adverse Media, PEP relations or moderate and/or high AML/TF risk country connections will be considered “Moderate Risk” and will be required to provide additional information such as business Industry, expected activity, and geographical locations of operations (business).

High Risk – Subject to Enhanced Due Diligence:

Business Accounts (i) have high AML/TF risk country connections such as UBOs or (ii) Operate a “High Risk” business sector, as determined by NAICS code; (iii) use a registered agent as the physical address for the business entity in conjunction with a beneficial owner that resides outside of the US (iv) any activities determined to be potentially suspicious upon investigation by Company personnel, such as recent negative news for financial related crimes or (v) do not fall into the Low or Moderate risk categories for other reasons not previously identified will be considered “High Risk” (vi) lists cryptocurrency as their use case (vii) any non-US SPV