U.S. community banks are under pressure to improve KYB (Know Your Business) compliance for small business accounts, especially in light of evolving FinCEN and OCC guidelines. This article explores how KYB modernization using iComply can help banks uncover risk, automate beneficial ownership discovery, and streamline business account onboarding—without increasing compliance headcou
Community banks are the backbone of American Main Street. They finance local businesses, support job creation, and deliver personalized service in ways that larger institutions often can’t. But in 2025, these same banks face increasing pressure from regulators to modernize their approach to KYB—Know Your Business—especially when onboarding and monitoring small and medium-sized business (SMB) accounts.
The Bank Secrecy Act (BSA), the Corporate Transparency Act (CTA), and updated FinCEN guidance are reshaping expectations around business verification, beneficial ownership identification, and AML due diligence. For community banks, this means a new era of regulatory scrutiny—with limited resources to meet it.
The Compliance Challenge
Unlike large banks with dedicated compliance divisions and automation budgets, most community banks operate with tight teams and resource constraints. Yet the burden of compliance is growing:
FinCEN’s Beneficial Ownership Information (BOI) Rule now requires detailed UBO disclosures from most business clients
OCC guidelines emphasize continuous monitoring and risk-based segmentation of commercial clients
SMB clients often have opaque structures—LLCs, trusts, layered ownership—that require more intensive due diligence
Without the right tools, community banks may face:
Slowed onboarding and increased abandonment
Gaps in beneficial ownership data
Difficulty proving compliance during audits
Higher costs and staff burnout
Where Traditional KYB Falls Short
Manual Processes: Many banks still rely on PDFs, in-branch document scans, or email back-and-forths to collect business documents and ownership information. This is time-consuming and error-prone.
Fragmented Vendor Stacks: It’s common to see a mishmash of ID verification tools, AML screeners, and reporting systems that don’t talk to each other.
Reactive Risk Management: Without automated triggers, compliance teams may only discover red flags during periodic reviews or when alerted by third parties.
How iComply Modernizes KYB
iComply’s modular platform enables community banks to take a smarter, proactive approach to KYB with tools designed for the complexity of modern SMB verification.
1. UBO Discovery & Corporate Structure Mapping
Automated workflows parse corporate filings, shareholder data, and registry sources to:
Identify direct and indirect beneficial owners
Connect ownership chains and nominee relationships
Flag high-risk jurisdictions and complex structures
2. Smart Document Collection
Customizable white-label portals guide businesses through document uploads (e.g., Articles of Incorporation, licenses, shareholder agreements) using a risk-based logic tree.
3. Ongoing Risk Monitoring
Integrate AML watchlists, PEP screening, and adverse media scanning into the KYB lifecycle. Set triggers based on changes in ownership, risk score, or business activity.
4. Edge Computing for Privacy Compliance
Sensitive data—like passports or ID documents of directors—is processed locally on the user’s device before encryption and transfer, supporting data sovereignty and reducing breach risk.
5. Ready-to-Audit Records
Every onboarding and refresh event is logged with full audit trails, timestamps, and linked source documents—streamlining exam prep and reducing regulatory friction.
Case Study: Midwestern Community Bank
A regional bank serving agricultural and construction businesses implemented iComply’s KYB module to address onboarding delays and incomplete BO data. The result:
Reduced average onboarding time from 5 days to less than 24 hours
Increased accuracy of UBO records by 60%
Passed a FinCEN audit with zero deficiencies
Regulatory Outlook for 2025
CTA Enforcement: As FinCEN begins enforcing penalties for BOI non-compliance, banks will need stronger controls to validate and monitor client-provided data.
OCC AML Exam Priorities: Community banks should expect increased examiner focus on KYB workflows, documentation, and UBO verification methods.
Technology Standards: There’s growing regulatory support for adopting centralized platforms that reduce fragmentation in compliance operations.
Recommendations
Community banks should:
Review and update KYB policies to reflect CTA and FinCEN rule changes
Replace manual and fragmented vendor processes with centralized, automated workflows
Prioritize edge-secure solutions that support privacy, security, and audit readiness
Talk to Our Team
Is your KYB process ready for 2025? iComply helps U.S. community banks modernize onboarding, uncover hidden risk, and comply with BOI rules—without growing your team.
Connect with us today to learn how we can help you simplify small business compliance and stay ahead of regulatory change.
When it comes to compliance, decentralization is changing the game. As regulations tighten and cyber threats grow, financial institutions are turning to innovations like edge computing, self-sovereign digital identity (SSI), and AI-powered transaction monitoring with blockchain-secured logs to protect sensitive data and streamline KYC, KYB, and AML processes.
These technologies make compliance not only stronger but smarter—here’s how they’re reshaping the future of risk management.
1. Edge Computing: Secure Data at the Source
Traditional compliance systems transmit customer data to multiple cloud servers and subprocessors—introducing risks along the way.
Edge computing eliminates those vulnerabilities by encrypting and verifying data directly on the user’s device or at a local edge node before it’s ever transmitted. This means:
Minimal data exposure: Sensitive information never travels further than it needs to.
Faster processing: Verification happens in real-time, cutting down delays in customer onboarding.
Built-in compliance: Local data processing aligns with regulations like GDPR and CCPA by keeping data within jurisdictional boundaries.
2. Self-Sovereign Digital Identity: Empowering Customers and Reducing Risk
SSI puts customers in control of their own verified identity data. Instead of handing over unnecessary personal information during onboarding, customers share only what’s needed through secure, verifiable credentials.
For compliance teams, this means:
Less liability: No need to store excessive customer data, reducing your exposure in the event of a breach.
Enhanced verification: SSI credentials are cryptographically secure and harder to forge.
Better customer experience: Clients appreciate the transparency and convenience of sharing verified information without repeated forms or unnecessary data requests.
3. AI-Powered Transaction Monitoring and Blockchain-Secured Logs
Blockchain-secured transaction logs provide an immutable, transparent record of transactions, while AI-powered monitoring enhances fraud detection. Instead of static or batch reviews, AI scans blockchain-based records in real-time to:
Identify complex transaction patterns that signal money laundering.
Flag connections to sanctioned individuals or flagged entities.
Analyze historical and current data simultaneously to detect trends, not just single red flags.
The combination of blockchain’s tamper-proof nature and AI’s processing power strengthens audit trails and improves AML screening accuracy without increasing manual workloads.
The Decentralized Advantage
Edge computing ensures that data stays local. SSI reduces your liability footprint by decentralizing identity control. AI-powered monitoring transforms static reports into proactive, real-time risk detection. Together, these innovations make compliance faster, more secure, and more customer-friendly—without compromising on privacy or performance.
Decentralization isn’t just the future of compliance—it’s happening now. With iComply’s platform, you can embrace these innovations to strengthen your KYC, KYB, and AML processes. Let’s lead the way to a more secure, decentralized future.
Meet Rachel—an asset manager onboarding a boutique investment fund with international stakeholders. Before she can move forward, Rachel must navigate KYC, KYB, and AML checks to stay compliant. It’s a complex process, and mistakes can mean fines or reputational risk.
Here’s how Rachel’s experience differs when using manual methods versus iComply’s compliance platform.
Step 1: Collecting Client Information
Manual Process: Rachel emails forms, requests documents, and waits for incomplete responses. She sends follow-ups, and the back-and-forth delays onboarding.
With iComply: Rachel sends a secure, custom-branded onboarding link. The platform guides the client through document uploads and verifies everything in real time.
Result: Onboarding is fast and complete—no delays or missing data.
Step 2: Verifying Ownership
For corporate clients, KYB compliance requires identifying all beneficial owners with 25% or more ownership.
Manual Process: Rachel searches public records, cross-references shareholder lists, and struggles with foreign registries.
With iComply: The system pulls corporate filings and ownership details globally in seconds, even revealing hidden layers like trusts or holding companies.
Result: Rachel gets an audit-ready overview of the business structure without manual digging.
Step 3: AML Screening
AML regulations require checking clients and stakeholders against sanctions, PEPs, and adverse media lists.
Manual Process: Rachel manually inputs names into multiple databases and spends hours reviewing false positives.
With iComply: The platform screens individuals automatically and filters out irrelevant matches, flagging only genuine risks.
Result: Fewer false positives, faster resolutions, and more focus on real risks.
Step 4: Recordkeeping and Reporting
Compliance regulations require asset managers to store records securely and generate detailed reports during audits.
Manual Process: Rachel stores files in multiple folders and scrambles to compile audit reports from spreadsheets and emails.
With iComply: Every action is logged automatically. Rachel generates a detailed, audit-ready report with one click.
Result: Audit prep takes minutes, not hours.
A Tale of Two Experiences
In the manual workflow, onboarding takes days or weeks, frustrating clients and draining team resources. With iComply, onboarding is seamless—clients appreciate the professional experience, and Rachel’s team focuses on client relationships instead of admin work.
Key Compliance Considerations for Asset Managers
Complete Due Diligence: Collect and verify customer information thoroughly.
Ongoing AML Screening: Continuously monitor for sanctions, PEPs, and adverse media.
Ownership Transparency: Identify beneficial owners, especially in complex structures.
Data Security: Store sensitive information securely and comply with regulations like GDPR.
Audit Readiness: Keep comprehensive records and generate reports easily.
Why iComply?
With iComply, Rachel cut onboarding time, reduced manual work, and stayed audit-ready with end-to-end encryption and automated reporting. Compliance became a competitive advantage—not a burden.
Is your compliance workflow helping or holding you back? Let iComply simplify KYC, KYB, and AML so you can focus on growing your clients’ wealth. Let’s get started.
The crypto world moves fast—but so do regulations. One of the most impactful regulations for crypto businesses today is the FATF Travel Rule. It’s not just another checkbox to tick—it’s a global mandate designed to increase transparency and reduce financial crime in digital assets. If you’re a crypto asset service provider (CASP), understanding and complying with the Travel Rule isn’t optional—it’s essential to staying competitive and credible.
Let’s walk through what the Travel Rule requires and how you can stay compliant without slowing down your operations or alienating your customers.
What Is the FATF Travel Rule?
The Financial Action Task Force (FATF) Travel Rule requires that CASPs—such as crypto exchanges, wallet providers, and custodians—collect and share certain information about the originators (senders) and beneficiaries (recipients) of crypto transactions over a specified threshold.
Think of it as the crypto equivalent of wire transfer rules in traditional banking. When funds move between two institutions, basic identifying information must travel with them.
Here’s what you need to know:
Threshold Amount: The Travel Rule applies to crypto transactions over USD/EUR 1,000 (or local equivalent).
Required Information:
For the Sender (Originator): Full name, wallet address (or unique account ID), physical address or national ID number, and transaction purpose if required by local regulations.
For the Recipient (Beneficiary): Full name, wallet address, and additional details if needed.
Cross-Border Compliance: The rule applies across jurisdictions, meaning you need to ensure both sides of the transaction are compliant, even if the recipient CASP is in a different country.
Why Compliance Matters
Failing to comply with the Travel Rule can lead to regulatory penalties, reputational damage, or even being cut off from global markets. But it’s not just about avoiding punishment—it’s about building trust. The Travel Rule is designed to make the crypto ecosystem safer by preventing money laundering, terrorism financing, and other illicit activities. For CASPs that want to thrive, being seen as compliant builds credibility with regulators, partners, and customers.
The Challenges of Travel Rule Compliance
Travel Rule compliance isn’t without hurdles:
Data Sharing Complexities: Sharing sensitive customer information across borders requires secure systems that comply with privacy laws like GDPR.
Transaction Delays: Manual verification can slow down transactions, frustrating customers and introducing operational inefficiencies.
Interoperability Issues: Ensuring compliance across different CASPs and jurisdictions can be tricky, especially if the other party uses different systems.
But these challenges don’t have to hold you back.
How iComply Simplifies Travel Rule Compliance
iComply’s end-to-end solution for KYC, KYB, and AML goes beyond basic compliance—it makes Travel Rule compliance smarter and faster with edge computing technology. Here’s how it works:
Seamless Data Collection and Verification Instead of relying on third-party subprocessors that introduce data privacy concerns, iComply verifies and authenticates sender and recipient data locally on the client’s device using edge computing. This ensures that sensitive information is encrypted and verified before it leaves the device—minimizing data exposure risks and ensuring compliance with privacy laws like GDPR and CCPA.
Real-Time Screening and Alerts iComply automatically screens transaction participants against global watchlists, PEP databases, and adverse media sources in real-time. Suspicious activity? Immediate alerts are sent to compliance officers to take action without interrupting transaction flow.
Interoperability and API Integration iComply integrates easily with other CASPs’ compliance systems using its robust API. Whether your counterpart is using a different solution or in another jurisdiction, you can ensure data flows securely and meets FATF standards.
Automated Reporting and Audit Trails Generate audit-ready reports with one click. Every verification step is logged and time-stamped, making it easy to prove compliance during regulatory inspections.
Configurable Rules Based on Jurisdiction Compliance isn’t one-size-fits-all. iComply allows you to configure data requirements based on the jurisdiction of the sender and recipient, ensuring you meet local and international requirements.
Travel Rule Compliance in Action: A Case Study
Let’s look at how compliance plays out in real life.
Scenario: Alex, a customer of a U.S.-based crypto exchange, sends $5,000 in BTC to a friend’s wallet held at a European exchange.
Without iComply:
The compliance team manually collects Alex’s data, verifies it, and emails it to the European CASP. This takes time and risks data breaches during transmission.
If the receiving exchange uses a different system, compatibility issues may arise, delaying the transaction further.
With iComply:
Alex’s data is encrypted and authenticated directly on the exchange’s app using edge computing. No unnecessary data transfers.
iComply verifies the transaction participants in real-time and sends a secure compliance packet directly to the European exchange—fast, secure, and compliant.
The result? Faster transactions, stronger security, and a frictionless customer experience.
Why Choose iComply?
iComply’s platform doesn’t just help you comply—it optimizes your entire compliance workflow. By using edge computing, automated risk screening, and seamless integration, iComply simplifies Travel Rule compliance without sacrificing security or efficiency.
In the fast-moving world of crypto, compliance isn’t just a necessity—it’s a competitive advantage. Ready to stay ahead of the curve and build trust with your users and regulators? Let’s make compliance work for you.
As a FINRA-regulated broker-dealer, maintaining robust Know Your Customer (KYC), Know Your Business (KYB), and Anti-Money Laundering (AML) workflows is essential to comply with regulatory requirements and safeguard your firm against financial crimes.
Below is a checklist to help ensure your compliance programs align with FINRA rules:
1. Know Your Customer (KYC)
Customer Identification Program (CIP):
Collect and verify essential customer information:
Full name
Date of birth
Address
Identification number
Maintain records of the identification information and verification methods used.
Customer Due Diligence (CDD):
Understand the nature and purpose of customer relationships to develop a risk profile.
Conduct ongoing monitoring to identify and report suspicious activities.
Enhanced Due Diligence (EDD):
Apply additional scrutiny to high-risk customers, such as politically exposed persons (PEPs) or those from high-risk jurisdictions.
Gather information on the source of funds and wealth.
Relevant FINRA Rule:
FINRA Rule 2090 – Know Your Customer: Requires firms to use reasonable diligence to know and retain essential facts concerning every customer. FINRA
2. Know Your Business (KYB)
Business Entity Verification:
Verify the legal status and ownership structure of corporate clients.
Identify and verify beneficial owners with a 25% or more ownership stake.
Risk Assessment:
Assess the nature of the business, its products, services, and customer base to determine risk levels.
Ongoing Monitoring:
Continuously monitor business accounts for unusual or suspicious activities.
Relevant FINRA Guidance:
While FINRA does not have a specific rule titled “KYB,” the principles of customer due diligence and AML compliance extend to business entities.
3. Anti-Money Laundering (AML) Compliance
Written AML Program:
Develop and implement a written AML program approved by senior management.
Ensure the program is reasonably designed to achieve compliance with the Bank Secrecy Act (BSA) and its implementing regulations.
Independent Testing:
Conduct independent testing of the AML program at least annually to assess its effectiveness.
Designated AML Compliance Officer:
Appoint a qualified individual responsible for overseeing AML compliance.
Ongoing Training:
Provide ongoing training for appropriate personnel to ensure awareness of AML responsibilities.
Suspicious Activity Reporting (SAR):
Establish procedures for detecting and reporting suspicious transactions to the Financial Crimes Enforcement Network (FinCEN).
Relevant FINRA Rule:
FINRA Rule 3310 – Anti-Money Laundering Compliance Program: Sets forth minimum standards for AML compliance programs, including the requirements mentioned above. FINRA
Additional Considerations
Recordkeeping:
Maintain comprehensive records of all customer information, transaction reports, and compliance efforts as required by FINRA and the BSA.
Risk-Based Approach:
Implement a risk-based approach to AML compliance, allocating resources commensurate with the level of risk identified.
Regulatory Updates:
Stay informed about updates to FINRA rules and federal regulations to ensure ongoing compliance.
By adhering to this checklist and the associated FINRA rules, your firm can establish robust KYC, KYB, and AML workflows that not only comply with regulatory requirements but also protect against financial crimes and enhance overall operational integrity.
Meet Alex—a compliance analyst onboarding a new corporate client. The company looks legitimate, but beneficial ownership is often more complex than it appears. With layers of holding companies and indirect stakeholders, missing key details could mean regulatory trouble—or worse. Fortunately, with the right system, Alex’s beneficial ownership reviews can be streamlined, secure, and insightful.
Alex’s Approach to Beneficial Ownership Reviews
Instead of hunting through emails and databases, Alex pulls director filings, shareholder lists, and organizational charts automatically from trusted global sources. This gives him an instant overview of the company’s structure and connections—even across multiple jurisdictions. Once the data is collected, Alex focuses on identifying individuals with 25% or more ownership or control. He cross-checks these key players against watchlists, sanctions, and adverse media to flag potential risks early.
To close the loop, Alex compiles findings into an audit-ready report—no manual spreadsheets or patchwork PDFs. With one click, he generates a detailed summary that tracks every step of his review, making audits painless and ensuring regulatory requirements are met. Real-time alerts and built-in compliance checks mean Alex stays proactive, not reactive.
Key Considerations for Complex Beneficial Ownership
Trusts, Shells, and Hidden Layers: Ownership isn’t always direct. Many firms use trusts or shell companies to obscure control. A robust compliance platform helps uncover indirect ownership and manage ownership percentages with transparency.
Global Variations in Ownership Laws: Each jurisdiction may have different thresholds and definitions for beneficial ownership. Your system should adapt to local regulations while maintaining a unified global view.
Dynamic Ownership Changes: Ownership structures evolve due to mergers, investments, and leadership shifts. Continuous monitoring ensures you catch changes that could impact compliance long after onboarding.
Make Compliance Your Strength
With iComply, beneficial ownership reviews become an integral part of a smarter, more secure due diligence process. Automating data collection and verification saves time, reduces errors, and keeps your compliance team a step ahead. Ready to transform your approach? Let’s get started.
“Chandy,” is a technology and risk expert with executive experience at Boston Consulting Group, Citi, and PwC. With over two decades in financial services, digital transformation, and enterprise risk, he advises iComply on scalable compliance infrastructure for global markets.
Thomas is a global tax and compliance expert with deep specialization in digital assets, blockchain, and tokenization. As a partner at MME Legal | Tax | Compliance, he advises iComply on regulatory strategy, cross-border compliance, and digital finance innovation.
Thomas is a renowned identity and cybersecurity expert, serving as CTO of Connection Science at MIT. With deep expertise in decentralized identity, zero trust, and secure data exchange, he advises iComply on cutting-edge technology and privacy-first compliance architecture.
Rodney is the former President of ADP Canada and international executive with over two decades of leadership in global HR and enterprise technology. He advises iComply with deep expertise in international service delivery, M&A, and scaling high-growth operations across regulated markets.
Praveen is a serial entrepreneur and technology innovator, known for leadership roles at Lucent Bell Labs, ChargePoint, and the Stanford Linear Accelerator. He advises iComply on advanced computing, scalable infrastructure, and the intersection of AI, energy, and compliance tech.
Paul is a Canadian RegTech leader and founder of Maple Peak Group, with extensive experience in financial services compliance, AML, and digital transformation. He advises iComply on regulatory alignment, operational strategy, and scaling compliance programs in complex markets.
John is a seasoned business executive with senior leadership experience at CIBC, UBS, and Accenture. With deep expertise in investment banking, private equity, and digital transformation, he advises iComply on strategic growth, partnerships, and global market expansion.
Jeff is a former CFTC official and globally recognized expert in financial regulation, fintech, and digital assets. As founder of Bandman Advisors, he brings deep insight into regulatory policy, market infrastructure, and innovation to guide iComply’s global compliance strategy.
Greg is a seasoned investment banker with over 35 years of experience, including leadership roles at BMO Capital Markets, Morgan Stanley, and Citigroup. Greg brings deep expertise in financial strategy and growth to support iComply's expansion in the RegTech sector.
Deven is the former President of S&P and a globally respected authority in risk, data, and capital markets. With decades of leadership across financial services and tech, he advises iComply on strategic growth, governance, and the future of trusted data in AML compliance.
