What is KYC / KYB?

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Verification will open soon!

We wanted to give you a bit of time to gather your information before we open the verification process. As soon as we're ready, we'll send out an email to let you know it's time to get verified!

In the meantime, feel free to read through the details about how the process works and what you'll need to have on hand when the time comes.


 

We require all users in Humi who have permission to run payroll and initiate the movement of funds on the platform to verify their business details (KYB) and their personal identity (KYC). This ensures Humi remains compliant with provincial and federal requirements related to the movement of money and payroll companies in Canada.

Getting verified in Humi is easy! To help you get ready, we’ve put together a list of frequently asked questions related to the process.

 

What is KYC?

KYC stands for "Know Your Customer" or "Know Your Client." It's a regulatory and legal requirement in the financial industry that compels financial institutions and other regulated companies to verify the identity, suitability, and risks involved with maintaining a business relationship with their clients.

The primary goal of KYC processes is to prevent identity theft, financial fraud, money laundering, and terrorist financing.

The KYC procedures are critical for ensuring the safety and integrity of the financial system, by providing a thorough background check that helps protect against corruption, terrorist financing, and other illegal activities.

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What is KYB?

KYB stands for "Know Your Business." This process is similar to KYC (Know Your Customer), but focuses on verifying the legitimacy and integrity of businesses rather than individuals. KYB procedures are increasingly important in the financial and corporate sectors to prevent business-related fraud, money laundering, and other illicit activities. The process is especially critical when establishing B2B (business-to-business) relationships and transactions.

Here are the key components of KYB:

  1. Business Verification: This involves confirming the business exists and is legally registered. Verification can include checking the company’s registration details, such as its legal name, registration number, and registered address through governmental databases or third-party sources.
  2. Understanding Business Structure: KYB processes often involve understanding the company's ownership structure, identifying significant shareholders, and determining the ultimate beneficial owners (UBOs). This is crucial to prevent money laundering activities conducted through complex corporate structures.
  3. Assessing Business Reputation: KYB might also involve assessing the reputation of the business; which can include analysis of media coverage, legal disputes, and financial health. This helps in understanding any potential risks associated with doing business with them.
  4. Compliance Checks: KYB includes ensuring that the business complies with local and international regulations, including anti-money laundering (AML) laws and sanctions lists. This could involve checks against blacklists and politically exposed persons (PEPs).

Why is it important?

KYB is essential not only for compliance with legal requirements but also for managing risk and building trust between businesses in the financial ecosystem.

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What is FINTRAC?

FINTRAC, which stands for the Financial Transactions and Reports Analysis Centre of Canada, is Canada's national financial intelligence unit.

It was established in 2000 and operates under the authority of the Ministry of Finance. The primary role of FINTRAC is to facilitate the detection, prevention, and deterrence of money laundering, terrorist financing activities, and other threats to the security of Canada.

The activities of FINTRAC are crucial in maintaining the integrity of Canada's financial system and protecting it from being exploited for illicit activities. To learn more, click here.

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What is Persona?

Persona is an industry-leading company that provides KYC and KYB verification services. Through Humi’s vendor relationship, Persona will provide tools and technology designed to help businesses verify the identities of our clients as part of our KYC and KYB compliance requirements.

Persona's services are used across various industries, including finance, healthcare, and online marketplaces, to ensure compliance with regulatory requirements and to protect against fraud.

Here are some key features of Persona's verification services that Humi uses:

  1. Document Verification: Persona enables businesses to verify government-issued IDs such as passports, driver's licenses, and other identification documents. This process typically involves the user uploading a photo of their ID, which Persona's technology checks for authenticity.
  2. Biometric Verification: To further ensure that the person providing the ID is its rightful owner, Persona can employ biometric checks, such as facial recognition. This involves comparing a live selfie taken during the verification process to the photo on the provided ID.
  3. Database Checks: Persona can cross-reference information users provide with various databases to confirm their identity. This can include checks against credit databases, public records, or government databases.

To learn more about Persona, click here.

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