KYB Software for Banks: How Compliancely Automates Business Due Diligence
Business onboarding for banks has changed over the last several years. Banks are now expected to move faster, support more complex business structures, and still maintain strong compliance controls. In such scenarios, relying on manual research, disconnected tools, or analyst judgment alone often leads to inconsistent outcomes and documentation gaps.
KYB software for banks plays an important role in bridging such gaps. By automating key due diligence checks and returning structured, time-stamped results, Compliancely helps banks and payments teams stay consistent as onboarding volumes grow.
What Banks Must Verify in KYB
Banks conduct due diligence through Know Your Business (KYB) to verify that the business seeking an account and/or product (e.g., credit facilities) is a legitimate entity and operating in alignment with internal policies regarding ownership and/or control. Although KYB is often completed as part of a broader onboarding process that includes KYC and sanctions screening, each check plays a different role and works best when it is treated as a separate, clearly defined control.
A strong, bank-grade KYB program is built around consistency and documentation. Regulators typically assess how information was verified, how decisions were reached, and who approved any exceptions. When these are clearly separated and well documented, audits and exams can run more smoothly and require much less back-and-forth.
Typical KYB outputs include:
- Entity verification results (legal name, address, formation details)
- Tax ID validation results
- Ownership and control records aligned to policy
- Records of decisions, approvals, and exceptions
How Compliancely Automates Business Verification for Legal Entities
Compliancely automates business verification by standardizing how entity information is collected and validated, which reduces analyst rework and minimizes onboarding errors caused by missing or inconsistent data.
The platform supports business verification and Secretary of State checks by returning registry and identity results through an API or portal, so that banks can store them in their KYB records and workflows. Banks can also set up onboarding so required checks happen before activation, and use Compliancely’s time-stamped results and status fields to route remediation.
Compliancely supports this with:
- Structured capture of entity attributes
- Registry and identity verification signals returned in a consistent format
- Clear pass/fail outcomes
- Evidence logs showing what was checked and when
IRS TIN Matching and Why it Matters in KYB Workflows
Getting tax details right from the start makes a real difference during business onboarding. Compliancely supports IRS TIN/name matching for business onboarding as a dedicated control that works alongside identity verification to help catch issues early and reduce avoidable follow-up later when used by authorized payers (or their agents) with access to IRS e-Services. These workflows are designed to align with IRS TIN Matching program requirements, but using Compliancely does not by itself guarantee full compliance with all IRS rules.
TIN mismatches are often most common early in onboarding and can create a backlog of work for remediation and reporting. If TIN matching is treated as an independent, logged control, it allows for more visibility and improved operational efficiency, and by resolving issues early, teams reduce downstream operational risk.
When putting TIN matching into practice, banks typically focus on:
- Recording match results with clear timestamps
- Sending mismatches into defined remediation workflows
- Setting policy rules for when accounts are limited or paused
- Making results easy to export for audits and internal reviews
Sanctions And Watchlist Screening in KYB Workflows
Sanctions compliance remains a critical obligation for banks. Compliancely supports sanctions and watchlist screening for business customers as part of the KYB workflow, including screening associated parties such as controllers and beneficial owners.
When a potential match appears, it needs to be handled the same way every time. What typically gets documented are:
- Screening results for the business and any related parties
- Notes explaining how potential matches were reviewed and resolved
- Any exceptions and approvals, with supporting context
- Evidence that escalation and review timelines were followed
Monitoring, Audit-Ready Logs, And Delivery Options
KYB goes beyond onboarding, since changes in ownership, control, or business activity can end up affecting a customer’s risk over time. To take that into account, Compliancely supports KYB monitoring and watchlist rescreening alerts so that teams can identify material changes that may require action. To support that, the platform provides:
- Alerts that are event-driven and tied to risk thresholds
- Exportable logs that can be used for audits or internal testing
- Real-time notifications that trigger downstream actions
- Bulk tools for periodic KYB refreshes
Real-Life KYB Scenarios in Practice
| Scenario | How Compliancely helps |
|---|---|
| Business details don’t match the registry record | Stops onboarding until it’s fixed. Keeps a record of what was checked, what was corrected, who reviewed it, and when. |
| EIN and legal name don’t match IRS TIN-matching results | Doesn’t allow activation until the name/EIN issue is corrected. Keeps the IRS match result, what was changed, and the final outcome with timestamps. |
| Possible watchlist/sanctions match for an owner or controller | Flags it for review and records the decision. If it can’t be cleared, it escalates. Keeps the screening result, the reason for the decision, and any approvals. |
| A watchlist update creates a new alert after onboarding | Re-checks the existing business when a new alert appears. Keeps the alert, the review notes, the decision, and timestamps. |
| Ownership or control changes | Refreshes the KYB file and re-screens the related people. Keeps the updated record, screening results, what changed, and timestamps. |
FAQs
1. What does Compliancely do as KYB software for banks?
Compliancely automates business (KYB) verification, IRS TIN/name matching, and sanctions and watchlist screening, while retaining time-stamped results to support AML reviews and audits.
2. How is KYB different from KYC in this workflow?
KYB verifies the business, whereas KYC verifies the people connected to the business, like the owners, controllers, signers, etc. In this workflow, Compliancely can process both and keep KYB and KYC as separate checks with separate results and audit records, so it’s clear what was verified and when.
3. When should cases be routed to enhanced review?
Cases are typically referred based on policy triggers such as complex ownership, high-risk industry, or high transaction value.
4. How are sanctions and watchlist matches handled?
Potential matches need documented disposition actions, as well as retained documentation of supporting evidence, for the KYB case file.
5. What does monitoring support after onboarding?
Monitoring alerts help the bank keep its KYB records up to date as watchlists change and other significant risk-related events occur.
6. How do results integrate into bank systems?
Compliancely supports API and portal delivery, including webhooks and bulk workflows, to provide structured, dated results.
The Bottom Line
Business onboarding is evolving rapidly. As a result, banks must build Know Your Business (KYB) programs that not only include an initial verification but also provide for continuous, documented proof of accurate and relevant decisions relating to the business over time.
When business verification, tax checks, screening, and ongoing monitoring are managed together instead of in silos, KYB becomes easier to run and easier to defend. Compliancely helps standardize controls and documentation so teams can operate consistently at scale.
See Compliancely in action to find out how automated due diligence can be integrated into banking operations in a way that supports both compliance and scale.
