What checks do I need before taking on a company as a client (KYB)?

Under the Money Laundering Regulations 2017, before taking on a company as a client a regulated firm must verify the company, understand who owns and controls it, and check those people.

The company (regulation 28(3)). Obtain and verify its name, company number and registered office. Take reasonable measures to determine and verify the law it is subject to and its constitution, and the full names of its board and the senior people responsible for running it.

Ownership and control (regulations 28(3A) and 28(4)). Take reasonable measures to understand its ownership and control structure, and identify and verify its beneficial owners: anyone who owns or controls more than 25% of the shares or voting rights, or otherwise controls the company (regulation 5). Where an owner is itself a company, follow the chain up to the people behind it.

The register (regulation 30A). Before the relationship starts, collect an excerpt of the company's register of people with significant control from Companies House, and report any material discrepancy between it and what your own checks find.

Sanctions and PEPs. Screen the company and the people behind it. A company owned more than 50% or otherwise controlled by a designated person counts as sanctioned (OFSI's ownership and control test). Find out whether any of them is a politically exposed person (regulation 35).

Risk. Assess the risk and apply enhanced due diligence where it is high, including for anyone established in a FATF call for action country (regulation 33). Keep the records for five years after the relationship ends (regulation 40).

On Certaby the KYB pack is £6.95 a company: its sanctions screen, the company and owners check (every director and owner screened and checked against the register of disqualified directors), the FCA register, a business risk score, and PEP and adverse media on up to 4 of its people, on one signed certificate. The company and owners check alone is £2.99.

Source: The Money Laundering Regulations 2017, regulation 28 (customer due diligence)

Last updated 2026-10-09.