KYB, KYC, KYT: The Three Pillars of Regulatory Compliance

Discover the transformative power of KY-everything—how KYC, KYB, and KYT are reshaping industries and ensuring compliance in our interconnected world.

Published on July 12, 2023
Last Updated on July 12, 2023

In this era of hyper-connectivity and stringent regulations , Know Your Customer (KYC) and Know Your Business (KYB) procedures, such as KYC transaction monitoring and KYB compliance, have evolved beyond their traditional boundaries. KY-everything represents a holistic approach that spans various sectors, revolutionizing businesses' operations and ensuring regulatory compliance. But what exactly are KYC and KYB? What about KYT?

It's time to discover how these game-changing concepts are reshaping industries worldwide, ensuring regulatory compliance, and unleashing new opportunities for growth.

What is KYC, KYB, and KYT?

KYC, KYB, and KYT are terms related to compliance procedures in the financial industry, specifically in the context of customer due diligence. Here's a brief explanation of each:

What is the importance of KYC, KYB, and KYT?

KYC (Know Your Customer), KYB (Know Your Business), and KYT (Know Your Transaction) are essential in managing risks associated with money laundering, terrorist financing, fraud, and other illegal activities. By following these processes, businesses can ensure regulatory compliance, maintain transparency, and safeguard themselves and the financial system. KYC, KYB, and KYT are instrumental in preventing financial crimes, maintaining trust, and contributing to the stability and security of the financial system.

However, these processes can be time-consuming and resource-intensive, which is why outsourcing to a third-party provider can be beneficial. Outsourcing can provide specialized expertise, reduce the burden on internal teams, and allocate resources more efficiently. Additionally, outsourcing can help control costs by eliminating the need for extensive infrastructure and training, while taking advantage of streamlined processes and economies of scale.

How Do You Outsource KYB, KYC, and KYT?

Outsourcing KYB, KYC, and KYT processes involve partnering with a third-party service provider that specializes in these compliance procedures. Here are the general steps involved in outsourcing these activities:

  • Identify Requirements: Assess your organization's specific KYB, KYC, and KYT requirements. Determine the scope of the outsourcing arrangement, including the types of businesses or individuals you need to verify, the level of due diligence required, and the transaction monitoring capabilities needed.
  • Research and Select Service Providers: Conduct thorough research to identify reputable service providers that offer outsourced KYB, KYC, and KYT services. Consider factors such as their expertise, track record, technological capabilities, compliance with regulations, and reputation in the industry.
  • Training and Knowledge Transfer: Provide the outsourced service provider with necessary information about your organization's policies, procedures, and specific requirements. Establish a list of expectations and goals and make sure that you are on the same page with the provider.
  • Regulatory Compliance and Audits: Conduct periodic audits or assessments of the provider's compliance procedures and controls to verify their adherence to regulatory requirements and your organization's standards.

How TaskUs Can Help You With KY-Everything

TaskUs provides comprehensive financial crime and compliance services that cover all aspects of KYB, KYC, and KYT processes. We use advanced technology and expertise to offer customer support and verification, data entry and processing, documentation review and analysis, and everything in between. With TaskUs, businesses can easily comply with regulatory requirements, manage financial crime risks, and maintain a secure and trustworthy operating environment.

For example, TaskUs was asked to help a global ride-hailing and on-demand food delivery company scale and cater to all of the new partners–drivers, couriers, and restaurants signing up for the service. It was experiencing hypergrowth in the ANZ and EMEA regions and needed to outsource such processes in order to keep up.

TaskUs established a document verification LOB consisting of over 100 Teammates to review new users' application documents and flag mismatches between documents. A small QA to Teammate ratio (1:10) ensured higher quality checks. A KYC LOB was also created to check application and payment documents against local government requirements, escalating fraud cases if needed.

The Results?

In just 8 weeks, our team of highly efficient Teammates and SMEs was able to:

  • Increase the number of documents per hour (DPH)
  • Bring the number of total documents stuck in waiting queues down from 1,500+ to less than 200 per week
  • Achieve overall improvement in Processed Docs and Efficiency
  • 98.9% Average SLA
  • 99.26% Weekly Accuracy Score (increased week-on-week performance)

Recognized by the Everest Group as the world's fastest business process outsourcing service provider and a major contender on Everest Group's PEAK Matrix® for Financial Crime and Compliance (FCC) Operations in 2022, with glowing reviews in Gartner Peer Insights Review, TaskUs is dedicated to providing exceptional outsourcing services, top-notch Risk + Response solutions, and consistently delivering outstanding results to support companies.

  • 2^TaskUs Customer Service BPO Services Reviews
KY-Everything with Us.


Surekha Nagpal
Senior Director, Financial Crime & Risk
Surekha has 20+ years of experience across financial crime compliance, business transformation, operations and talent acquisition. She drives aspects of the go-to-market strategy, social media engagement, and strategic initiatives.