Before a business can trade on an institutional OTC desk, it has to be onboarded. That process is called KYB, or Know Your Business, and it is the corporate equivalent of the identity checks an individual completes to open a bank account. This guide explains what KYB involves, why it exists, and how to prepare so that onboarding is fast rather than frustrating.
Why KYB exists
A regulated financial counterparty is legally obligated to know who it is transacting with. GlacierPay is registered as a Money Services Business with FINTRAC, Canada's financial intelligence unit, under registration number C10001598. That registration carries obligations under Canadian anti-money-laundering and counter-terrorist-financing law, including verifying the identity of clients, understanding the nature of their business, and screening for sanctions and other risks. KYB is how those obligations are met at the point of onboarding.
For the client, this is not just red tape. Trading with a counterparty that runs proper KYB means trading inside a system where everyone has been checked, which is precisely what makes institutional settlement safe. It also protects the client's own compliance posture, because dealing with a regulated, diligence-conducting desk is defensible to auditors and banks in a way that an anonymous venue is not.
What the process covers
KYB verifies four things: that the business is real and properly registered, who ultimately owns and controls it, where its funds come from, and whether it or its principals appear on any sanctions or watch lists. In practice, GlacierPay's onboarding covers each of these:
- Corporate documentation, including certificate of incorporation, registered address, and evidence of good standing.
- Beneficial ownership, identifying the individuals who ultimately own or control the business, typically above a twenty-five percent threshold.
- Source of funds, establishing that the money and assets flowing through the account come from legitimate business activity.
- Sanctions and adverse media screening, run against OFAC, EU, UN, and Canadian lists at onboarding and on an ongoing basis.
Documents to have ready
Onboarding moves fastest when the paperwork is assembled in advance. Most businesses will be asked for their incorporation documents, a recent proof of registered address, and details of directors and beneficial owners along with government-issued identity documents for each. Depending on the nature and expected volume of the relationship, the desk may also ask for financial statements or documentation supporting the source of funds. Identity verification is powered by Sumsub, so much of the individual verification happens through a guided digital flow rather than manual back-and-forth.
Having a designated point of contact on the client side who can gather signatures and documents quickly is often the single biggest factor in how fast onboarding completes.
How screening continues after onboarding
KYB is not a one-time gate. Once a client is onboarded, monitoring continues for the life of the relationship. On-chain activity is screened using Chainalysis blockchain analytics, which flags exposure to sanctioned addresses, mixers, darknet markets, and other high-risk counterparties. Fiat flows are screened against sanctions lists. Where required by Canadian law, GlacierPay files reports to FINTRAC, including Large Virtual Currency Transaction Reports and Suspicious Transaction Reports. This ongoing layer is what keeps the network clean well after the first trade.
What to expect on timing
For a well-prepared business with straightforward ownership, onboarding is typically measured in days rather than weeks, and many clients are ready to trade within forty-eight hours of submitting complete documentation. Complexity in the ownership structure, cross-border entities, or missing paperwork are the usual causes of delay. The desk's compliance team works alongside the client through the process, so questions can be resolved directly rather than through an opaque queue. Once KYB is complete, the client has full access to the desk, its liquidity, and its settlement rails.