How do KYC and KYB differ?

KYC (know your customer) means getting to know the customer in general — including a natural person. KYB (know your business) is its variant focused on a customer that is a company: confirming the company's existence and status, who represents it and who its beneficial owner is. For B2B counterparties we usually mean KYB.

Does every business have to apply AML measures?

No. The formal obligation applies to obliged entities — certain sectors and professions (including financial institutions, accounting firms, advisers, real-estate agents). Others may verify a counterparty out of business caution. Whether you are an obliged entity and to what extent should be confirmed with an adviser or compliance function.

What is the risk-based approach?

It is the principle that the depth of a check matches the risk of a given relationship. For low risk, basic measures suffice; for heightened risk, enhanced ones (e.g. more thorough establishment of the beneficial owner, source of funds or links). You assess risk by country, sector, ownership structure and the nature of the transaction, among others. Specific criteria are worth setting out in a policy agreed with an adviser.

How does AML connect with the beneficial owner and sanctions?

Establishing the beneficial owner (UBO) and checking whether related people are subject to sanctions are typical elements of AML/KYB verification. The point is to know who really stands behind a company and whether the relationship breaches any restrictions. Establishing the beneficial owner and the related register limits we cover in more depth in the related guide on the UBO in the Nordic countries.

How can I speed up verifying a Nordic counterparty?

Instead of assembling data from several Nordic registers in the local language, it is more convenient to gather it in one report. A NordScan report organises registry data, legal form, representation, status and finances of a company from Norway, Sweden or Denmark in your language, in a single PDF — which speeds up the KYB layer. Match the sufficient scope of the check and how you document it to your obligations, confirming them with an adviser.

AML and KYC — when you must verify a B2B counterparty

Published: 2026-07-24

Not every relationship requires a formal counterparty check, but in many situations it is an obligation, not just good practice. This stems from anti-money-laundering (AML) rules, which require certain businesses and professions to know their customer (KYC) and their business counterparty (KYB). This guide explains what the abbreviations AML, KYC and KYB mean, when a check is mandatory, what it covers and how to run it when your partner is a company from Norway, Sweden or Denmark. We write generally and from the perspective of a business checking a partner — this is not legal advice. Confirm the scope of your own obligations (sector, role, transaction threshold) with an adviser or compliance function.

What are AML, KYC and KYB?

AML (anti-money laundering) is the body of rules and practices for preventing money laundering and terrorist financing. Within it appear two working terms. KYC (know your customer) means knowing your customer — establishing and confirming their identity and assessing risk. KYB (know your business) is a variant of KYC aimed at customers that are companies — it covers confirming the company's existence and status, its representation and its beneficial owners.

In practice, KYB for a Nordic counterparty combines several threads that we cover in separate guides: the company's registry data, its status and finances, and establishing the beneficial owner (UBO). Specific definitions and requirements come from each country's rules and are sometimes updated — here we describe them generally.

When is verifying a counterparty an obligation?

The duty to apply customer due-diligence measures stems from AML rules and applies to so-called obliged entities — that is, certain sectors and professions. Classically these are banks and financial institutions, but the list can be broader and includes, among others, accounting firms, advisers, real-estate agents, notaries and dealers in high-value goods. Beyond sector membership, the duty is often triggered by transaction circumstances: value above a threshold, cash payment or heightened risk.

The key is the risk-based approach: the higher the risk, the deeper the check. Even if you are not formally an obliged entity, verifying a counterparty can be sensible out of business caution. Whether and to what extent you have AML obligations depends on your situation — confirm it with an adviser or compliance function; this guide does not set them.

What does verifying a counterparty cover?

The scope depends on the risk, but usually covers several layers. The table below sets out the typical elements of a company check (KYB) and shows where the data comes from. This is a simplification — the exact scope and required evidence follow from your obligations and policy, which is worth setting with an adviser.

Typical layers of a company check (KYB)
Layer	What you confirm	Data source
Company identity	existence, legal form, status	company register (BRREG/Bolagsverket/CVR)
Representation	who can act for the company	company register
Beneficial owner (UBO)	who ultimately controls the company	beneficial-owner register (see the UBO guide)
Risk and sanctions	risk signals, links, listing status	your own assessment + specialised sources

How to run the check for a Nordic counterparty?

For a company from Norway, Sweden or Denmark, the data for a check is spread across registers and partly in the local language. Identity, legal form, status and representation you confirm in the company register (BRREG in Norway, Bolagsverket in Sweden, CVR/Virk in Denmark), tax and VAT status at the national administration, and the beneficial owner in the beneficial-owner register. Financial health you assess from the accounts (årsregnskap/årsredovisning/årsrapport).

Assembling this yourself from several sources in a foreign language can be time-consuming and error-prone. A NordScan report gathers a Nordic company's registry data, legal form, representation, status and finances into one clear whole in your language — which speeds up the KYB layer. Establishing the beneficial owner and assessing sanctions we cover in the related UBO guide. Match the sufficient scope and documentation of the check to your obligations — confirm them with an adviser or compliance function.

Documentation and ongoing monitoring

Verification does not end with a one-off check. If you are subject to AML obligations, you usually have to document what you checked and when, and keep the collected evidence for a required period — this can be audited. In an ongoing relationship, ongoing monitoring is added: updating data and reacting to material changes, e.g. a change of owners, company status or the appearance of new risk signals.

In practice this means a report collected once becomes outdated over time, and for a longer relationship it is worth repeating the check periodically. The specific document-retention period and review frequency come from the rules and your policy — confirm them with an adviser or compliance function. This guide does not set these requirements for you.

Frequently asked questions

How do KYC and KYB differ?: KYC (know your customer) means getting to know the customer in general — including a natural person. KYB (know your business) is its variant focused on a customer that is a company: confirming the company's existence and status, who represents it and who its beneficial owner is. For B2B counterparties we usually mean KYB.
Does every business have to apply AML measures?: No. The formal obligation applies to obliged entities — certain sectors and professions (including financial institutions, accounting firms, advisers, real-estate agents). Others may verify a counterparty out of business caution. Whether you are an obliged entity and to what extent should be confirmed with an adviser or compliance function.
What is the risk-based approach?: It is the principle that the depth of a check matches the risk of a given relationship. For low risk, basic measures suffice; for heightened risk, enhanced ones (e.g. more thorough establishment of the beneficial owner, source of funds or links). You assess risk by country, sector, ownership structure and the nature of the transaction, among others. Specific criteria are worth setting out in a policy agreed with an adviser.
How does AML connect with the beneficial owner and sanctions?: Establishing the beneficial owner (UBO) and checking whether related people are subject to sanctions are typical elements of AML/KYB verification. The point is to know who really stands behind a company and whether the relationship breaches any restrictions. Establishing the beneficial owner and the related register limits we cover in more depth in the related guide on the UBO in the Nordic countries.
How can I speed up verifying a Nordic counterparty?: Instead of assembling data from several Nordic registers in the local language, it is more convenient to gather it in one report. A NordScan report organises registry data, legal form, representation, status and finances of a company from Norway, Sweden or Denmark in your language, in a single PDF — which speeds up the KYB layer. Match the sufficient scope of the check and how you document it to your obligations, confirming them with an adviser.

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This guide is for information purposes only and does not constitute legal or tax advice. Laws and registry rules may change — the information held in the relevant country's official registers is always decisive.