KYC, KYB, and AML for Contractor Payments: What You Really Need

KYC, KYB, AML often feel like “bank language.” For payout operations, they’re simpler:

• KYC (Know Your Customer): verify the person you pay is real.
• KYB (Know Your Business): verify the company you pay is legitimate.
• AML (Anti-Money Laundering): reduce the risk of funding illegal activity.

At scale, these checks protect you from fraud, disputes, and reputational risk.

You typically need enough information to:

• link the contractor to an identity
• match payment details to that identity
• keep evidence for audits and disputes

Overkill is collecting “everything” without a reason. It slows onboarding and hurts conversion.
A smart approach is risk-based: more checks for higher-risk payouts, less friction for low-risk cases.

Three practical rules:

1. Ask for data in a structured form, not by email.
2. Validate early (before approval), not after payments fail.
3. Keep a clear audit trail: who verified, when, and what changed.

This reduces manual review time and support escalations.

FLEXIS helps organize contractor data and documentation so checks are consistent and repeatable—without turning onboarding into a bureaucratic maze. Related: Compliance & Risk and Security.

KYC/KYB/AML is not about paperwork for its own sake. It’s about safe, scalable contractor payments. FLEXIS helps you run the right checks with the right level of friction.