KYC (Know Your Customer) and KYB (Know Your Business) are verification processes that confirm the identity and legitimacy of parties before any commercial engagement. In international commodity trade, these are standard requirements — not optional steps.
What Is KYC and KYB?
KYC (Know Your Customer) refers to the process of verifying the identity of individual parties — typically directors, beneficial owners, and authorized representatives. Standard KYC documents include: valid passport or government-issued ID (not expired), proof of residential address (utility bill or bank statement within 3 months), AML declaration, and sanctions self-declaration.
KYB (Know Your Business) extends verification to the company level. It confirms that a business entity is legitimately registered, in good standing, and whose beneficial ownership is transparent. Standard KYB documents: certificate of incorporation, trade license or commercial registration, memorandum and articles of association, beneficial ownership structure, proof of registered address, and relevant banking references.
MoonGate coordinates KYC/KYB administratively. All verification is document-based administrative review. Parties must obtain their own independent legal compliance assessments.
AML and Sanctions Screening
AML/CFT screening is conducted alongside KYC/KYB. Every party is screened against OFAC SDN lists, UN Security Council sanctions lists, EU consolidated sanctions, and relevant regional watchlists. Any match triggers an immediate review and potential disqualification from engagement. This protects all parties and maintains the integrity of the coordination process.
KYC in Commodity Trade vs. Financial Services
KYC in commodity trade coordination differs from KYC in financial services. Financial institutions conduct KYC as part of regulated financial due diligence. Administrative coordinators like MoonGate conduct KYC/KYB as part of their compliance obligations to ensure they only facilitate engagements between legitimate, verified commercial parties — not to provide financial compliance certifications to those parties.
See also: The Role of Compliance in Commodity Trade | Document Checklist | Submit an Inquiry