Before a company can convert bank funds into USDC and pay an overseas supplier, it may be asked for incorporation records, ownership details and an explanation of its expected payments. This process is commonly called Know Your Business, or KYB.
KYB is not designed to test whether a company understands crypto. It helps a regulated financial or conversion provider determine that the applicant is a real business, the person acting for it is authorized, the natural people who ultimately own or control it are known, and the proposed activity is consistent with the business.
A non-custodial payment design does not remove this step. RICE Pay may not hold or independently move customer funds, while the partner converting fiat currency to USDC may still have its own customer-due-diligence, sanctions and transaction-monitoring duties. Those are separate questions.
1. KYB is the business counterpart to customer verification
KYC usually refers to identifying an individual. KYB applies that principle to a legal entity and therefore has more layers: the company must be identified, the person applying must be authorized, and the natural people behind the entity may need to be identified and verified.
FATF Recommendation 10 sets the international baseline for customer due diligence. It calls for identifying and verifying the customer, confirming that a person acting for the customer is authorized, identifying the beneficial owner, and understanding the purpose and intended nature of the relationship. Countries implement this baseline through their own laws, so the exact process is not identical everywhere.
- KYC: verifies a natural person
- KYB: verifies the legal entity and its business profile
- Representative check: confirms who may act for the company
- Beneficial-owner check: looks through the company to the people who ultimately own or control it
FATF — The FATF Recommendations (updated October 2025) ↗FinCEN — Customer Due Diligence Final Rule ↗
2. KYB is not paperwork for paperwork's sake
Companies can be misused to conceal the person behind funds, disguise prohibited activity or create a credible-looking front for fraud. Reliable company and ownership information helps providers distinguish an operating business from an anonymous shell or an impersonated company.
The objective is also practical. A provider that knows the customer's normal business and expected activity has a baseline for recognizing a payment that does not fit. FATF's current standards emphasize proportional, risk-based measures rather than treating every customer as equally risky.
- Prevent a stolen or fabricated corporate identity from opening the service
- Identify hidden ownership or control
- Screen relevant parties and payment routes against sanctions restrictions
- Compare actual activity with the expected purpose and volume
FATF — Guidance on Beneficial Ownership of Legal Persons ↗FinCEN — Customer Due Diligence Final Rule ↗OFAC — Sanctions Compliance Guidance for the Virtual Currency Industry ↗
3. First, the reviewer confirms that the company exists
The legal name entered in onboarding should match authoritative company records. Registration number, legal form, incorporation country, registered address, operating address, tax identifier and website may be checked against registries or independent documents.
A mismatch does not always mean wrongdoing. Companies move, use trading names and operate from addresses different from their registered office. But unexplained differences slow review, so the applicant should state both the legal record and the current operating reality clearly.
- Certificate of incorporation, registration extract or equivalent
- Articles, operating agreement or partnership document where relevant
- Current registered and operating addresses
- Tax or business identification number
- Business website and a plain-language description of products or services
4. The reviewer must understand who owns, controls and represents the company
A company's name is not enough when another company sits above it or ownership is divided through several layers. The review may trace the chain until it reaches the natural people who ultimately own or control the applicant. These people are commonly called ultimate beneficial owners, or UBOs.
A percentage such as 25% is common in some regimes and provider processes, but it is not a universal rule for every country or situation. Control can also arise through voting rights, executive authority or other means. A separate representative must be authorized to accept terms and act for the company.
- Full name, date of birth, nationality and residential address
- Government-issued identity document when required
- Ownership percentage or description of control
- Ownership chart for holding-company structures
- Evidence that the applicant is an authorized representative
FATF — Guidance on Beneficial Ownership of Legal Persons ↗FinCEN — Customer Due Diligence Final Rule ↗Stripe — Identity verification for connected accounts ↗
5. Business activity and payment purpose must make commercial sense
The reviewer needs more than an industry label such as ‘trading company.’ It may ask what goods the company imports, where it buys them, who its usual suppliers are and why USDC is useful for that payment flow. The answer should connect the service to ordinary commercial activity.
For a RICE Pay candidate, a clear explanation might state that the company imports a defined category of goods, pays several overseas suppliers each month, and wants to compare the cost and settlement time of bank wires with customer-authorized USDC payments. It should not invent volumes or promise activity that the company cannot document.
- Products or services sold
- Reason for overseas supplier payments
- Typical supplier countries and payment currency
- How the business earns revenue and funds the payments
- Why the expected activity fits invoices, purchase orders or contracts
6. Countries, amounts and frequency define the expected transaction profile
A provider may ask for the expected monthly number of payments, typical and maximum amount, funding currency, supplier locations and anticipated total volume. These are not forecasts that must be perfectly exact; they form a reasonable baseline for risk review and monitoring.
A sudden payment far above the stated range, a new high-risk jurisdiction, rapid pass-through activity or a wallet linked to restricted activity may require another review. OFAC guidance for virtual-currency businesses specifically discusses customer, transaction, wallet-address and geographic screening.
- Typical and maximum payment amount
- Expected monthly frequency and volume
- Origin of funds and funding bank account ownership
- Supplier and destination countries
- Expected wallet and blockchain network use
OFAC — Sanctions Compliance Guidance for the Virtual Currency Industry ↗FinCEN — Customer Due Diligence Final Rule ↗
7. Additional documents are usually requested to resolve a specific gap
Automated checks may fail because a registry is unavailable, a document is expired, an address differs, the ownership chain stops at another company or the representative cannot be matched. The reviewer may then ask for a recent registry extract, proof of address, identity document, ownership chart or authorization evidence.
Transaction-related evidence may also be requested when the proposed activity is difficult to understand from the company profile alone. A sample supplier invoice, purchase contract, bank statement or source-of-funds explanation can show that the payment has a plausible commercial basis. Sensitive documents should only be submitted through the approved secure channel, not sent casually by email.
- Use complete, legible and unexpired documents
- Keep names, dates and addresses consistent across the application
- Translate documents if the reviewer requires an accepted language
- Explain a mismatch instead of repeatedly uploading the same file
- Provide only through the official verification flow
8. Approval is not a permanent pass for every transaction
KYB approval usually means the business is eligible for the reviewed service under the current information and limits. It does not guarantee support for every supplier country, currency, wallet, amount or product category. A conversion partner can still decline or pause an individual transaction.
Customer information may need to be updated when ownership, directors, address, business model or expected activity changes. Ongoing monitoring is meant to identify activity that materially differs from the established profile; it does not mean that every approved company is presumed suspicious.
- Partner coverage and transaction limits still apply
- Sanctions and wallet screening can occur at transaction time
- Material company changes should be reported
- Expired documents may need renewal
- A previously supported route may change as law or partner policy changes
FATF — The FATF Recommendations (updated October 2025) ↗FinCEN — Customer Due Diligence Final Rule ↗OFAC — Sanctions Compliance Guidance for the Virtual Currency Industry ↗
Who is responsible for each part of the review?
The exact contract will depend on the selected partner, but the intended division should be understandable before onboarding.
| Party | Expected role | What that does not mean |
|---|---|---|
| Customer company | Provides accurate company, ownership and payment-purpose information | Submitting documents guarantees approval |
| RICE Pay | Collects the information needed for its service and guides the customer through the connected onboarding flow | RICE Pay can override a partner's compliance decision |
| Conversion partner | Performs the verification and transaction checks required for the fiat-to-USDC service it provides | One approval covers every country, amount or future transaction |
| Particle Network | Provides account and wallet infrastructure used in the product | Particle Network performs the customer's fiat-conversion KYB for RICE Pay |
| Blockchain network | Records accepted USDC transfers | An onchain record proves the legal identity or commercial purpose by itself |
RICE Pay should show the status and next action clearly, but it must not present a partner's independent review as a decision RICE Pay can guarantee.
What can happen after submission?
The result is not limited to instant approval or final rejection. A case may be pending, require information, be approved with limits, be declined for the selected route, or be paused for manual review. A declined application may simply fall outside a partner's supported jurisdictions, industries or risk appetite.
If more information is requested, the useful response is to identify the exact mismatch, provide the requested evidence once and explain any unavoidable difference. Repeatedly changing answers to obtain approval can create more inconsistency.
- Approved: proceed within the stated scope and limits
- More information required: submit the specified evidence
- Pending manual review: wait for the reviewer rather than retrying repeatedly
- Declined or unsupported: do not execute a live payment through that route
- Changed circumstances: update the profile before the next relevant payment
KYB approval confirms eligibility for a defined service relationship. It is not a certification that the company or every future payment is risk-free.
FinCEN — Customer Due Diligence Final Rule ↗Stripe — Identity verification for connected accounts ↗
A practical KYB preparation checklist
Prepare a coherent information set before starting instead of collecting random documents after an error appears.
- Use the exact legal company name and current registration data
- List the authorized representative, directors and beneficial owners as required
- Prepare a simple ownership chart if another company owns the applicant
- Describe the actual products, supplier-payment purpose and source of funds
- Estimate typical and maximum amounts, monthly frequency and countries
- Keep current registration, address, identity and authorization documents available
- Prepare sample invoices or contracts only if requested
- Report material ownership or business changes after approval
Conclusion: KYB makes the payment relationship explainable
KYB is not proof that blockchains are unsafe, and it does not give RICE Pay custody of customer funds. It answers a different set of questions: which company is applying, who stands behind it, what payments it expects to make and whether the selected partner can lawfully support that route.
A small importer does not need a compliance department to prepare well. It needs accurate company records, a transparent ownership explanation and realistic information about its suppliers and payment activity. RICE Pay should then minimize duplicate collection, explain which party is reviewing the information and show what action is required next.
Good KYB does not ask a business to prove everything. It asks for enough consistent evidence to understand the company and the payment it wants to make.
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Review my supplier-payment routeRICE Pay has not finalized every production conversion partner or jurisdiction. The exact information, ownership threshold, review time, supported countries and decision-maker will depend on the live partner, applicable law, business type and payment route. This article describes a practical expected process, not a promise of approval.
Verification requirements and partner coverage can change by jurisdiction, business type, transaction and date. Confirm the requirements shown in the live onboarding flow before relying on this article.