KYB / business verification

KYB business verification and beneficial ownership checks for real estate agents

By Brad Dack, Four Foxes · AML/CTF Consultant

When your client is a company, trust or other entity rather than a person, Customer Due Diligence generally means more than checking the entity itself - you need to identify the individuals who actually own or control it. A KYB ("Know Your Business") check is how you do that: verify the entity, trace its ownership structure, and identify its beneficial owners down to named individuals.

Verify by Four Foxes does this in a single, pay-per-check step - $33.50 per business, with no subscription and no lock-in contract - and includes KYC checks on the beneficial owners it identifies, so you're not paying separately to verify the people behind the entity.

$33.50

No subscriptions. No lock-in.per KYB check · invoiced monthly

What a single KYB check includes

Business entity verification - confirming the entity itself against official registers and databases (e.g. company and business name registers, ABN records), covering its type (company, trust, partnership or other structure) and core details.
Entity-level AML screening - the business itself is screened for sanctions and adverse media, separately from the screening carried out on its beneficial owners. See PEP, sanctions & adverse media screening for the full detail on what's checked.
Beneficial ownership mapping - tracing the ownership and control structure down to named individuals, including through layered entities.
KYC checks on beneficial owners included - each identified beneficial owner is verified and screened as part of the check, not billed separately.
A complete audit trail - a timestamped record of every step, ready to support your CDD records.
A branded verification link - for the individual checks that make up the ownership trail.

How beneficial ownership is worked out

Beneficial ownership isn't always a single shareholding percentage on a register. It's who ultimately benefits from or controls the entity, which can sit behind several layers of companies, trusts or partnerships. Based on AUSTRAC's published guidance and the AML/CTF Rules, the mapping generally works like this:

The 25% test. An individual who holds 25% or more of the entity, directly or indirectly through a chain of ownership, is generally treated as a beneficial owner. Where ownership runs through multiple layers, effective ownership is generally calculated by multiplying the share held at each layer.
Control, not just ownership. Someone who exercises control over the entity without necessarily meeting the 25% threshold, for example a trustee or an appointor of a trust, can generally still be treated as a beneficial owner on the basis of control.
Nominee holdings. Where an interest is held by a nominee, it's generally attributed to the person the nominee is acting for, not the nominee itself.
Listed company shortcut. If the entity is a listed public company subject to public disclosure (for example, on the ASX), or a subsidiary of one, tracing can generally stop at that point once it's documented, rather than continuing further up the chain.
No beneficial owner identified. Where no individual meets the ownership or control test, the general fallback is to identify and verify the CEO or an equivalent senior officer, with the reason recorded.

This is general information about how ownership mapping generally works. Complex or unusual structures can raise questions worth confirming against your own program.

Business structures it covers

The mapping is built to handle the structures real estate transactions actually involve, not just straightforward single-shareholder companies: companies, trusts, partnerships and other entity types, including chains where one entity's owner is itself another company or trust - drilling down layer by layer until every branch ends in a named individual.

How the pricing works

$33.50 per business check. Monthly invoicing. No subscription, no lock-in.

That covers the entity verification, the ownership mapping, and the KYC checks on the beneficial owners identified through it - one price for the full business check rather than a separate fee per person found along the way.

Verify a business client and its beneficial owners in one step.

Start verifying - from $33.50 per KYB check
Only need to verify an individual? See KYC checks →

KYB vs KYC - which do you need?

Situation	Check
Your client is an individual person	KYC
Your client is a company, trust, or other entity	KYB (includes KYC on beneficial owners)
You're verifying the other party in a transaction, and they're an individual	KYC
You're verifying the other party, and they're transacting through an entity	KYB

See KYC identity verification for real estate agents for what an individual check covers.

How KYB fits your AML program

A KYB check is a tool, not a whole compliance program. It sits inside your CDD process: your documented AML/CTF program sets out when a client relationship requires entity and ownership verification, and Verify is the practical step that does the mapping and provides supporting records for it.

If you also need the program itself written or reviewed, that's what Four Foxes Consulting does; if you already have one, Verify just plugs into it.

Frequently asked questions

What is a KYB check for real estate agents?

A KYB ("Know Your Business") check verifies a business client's entity details and traces its beneficial owners - the individuals who ultimately own or control it - so you can carry out Customer Due Diligence when your client is a company, trust or other entity rather than a person.

How much does a KYB check cost?

With Verify by Four Foxes, a KYB check is $33.50, billed monthly, with no subscription or lock-in contract. It includes entity verification, beneficial ownership mapping, and KYC checks on the identified beneficial owners.

Who counts as a beneficial owner?

Generally, an individual who holds 25% or more of the entity, directly or indirectly through a chain of ownership, or who otherwise exercises control over it - for example as a trustee or appointor. Effective ownership is calculated by multiplying the share held at each layer of a structure.

What if no individual meets the 25% ownership threshold?

Where no beneficial owner can be identified this way, the general fallback under AUSTRAC's guidance is to identify and verify the CEO or an equivalent senior officer of the entity, recording why no beneficial owner was established.

Does a listed company need full ownership tracing?

Generally, no. If the customer is a listed public company subject to public disclosure (for example, on the ASX), or a subsidiary of one, you can generally stop tracing at that point and document your findings, rather than tracing ownership further up the chain.

What's the difference between a KYC and a KYB check?

KYC verifies an individual person. KYB verifies a business entity and traces its beneficial owners, including running KYC checks on the individuals identified. If your client is a company, trust or partnership rather than a person, you'll generally need a KYB check rather than, or as well as, a KYC check.

Does a KYB check make my agency compliant?

No - a check is one part of your Customer Due Diligence, not your whole program. You remain responsible for your AML/CTF obligations. Verify provides the verification and mapping step and the evidence; your documented program sets out when and how you use it.

Verify by Four Foxes provides information and workflow tools to support your AML/CTF processes. It does not determine compliance, provide legal advice, or replace your legal obligations. You remain responsible for meeting your obligations under the AML/CTF Act. For guidance specific to your agency, refer to AUSTRAC or seek professional advice.