A practical guide for real estate agents, accountants, lawyers, conveyancers and other Tranche 2 businesses preparing for AUSTRAC obligations

From 2026, many Australian businesses will need to take a much more structured approach to verifying business customers. For real estate agents, accountants, lawyers, conveyancers, trust and company service providers, and other newly regulated businesses, this means understanding not only who the customer is, but also who owns or controls the customer. 

This is where KYB – Know Your Business – verification becomes essential.

KYB is the process of verifying a business customer, identifying its ownership and control structure, identifying ultimate beneficial owners, screening relevant parties, assessing risk, and keeping records that can support AML/CTF compliance.

Under Australia’s AML/CTF reforms, newly regulated businesses providing designated services from 1 July 2026 must create an AUSTRAC Online account and complete enrolment by 29 July 2026. AUSTRAC’s guidance also states that beneficial owners are individuals who directly or indirectly own 25% or more of a customer, or otherwise control the customer.  

For many small and mid-sized firms, KYB can quickly become complicated if it is managed manually through emails, PDFs, spreadsheets and disconnected ID verification tools. 

That is why Syntrico AML Guardian provides a fully automated KYB workflow, helping Australian businesses verify business customers, identify ultimate beneficial owners, trigger KYC checks, complete AML screening, assess risk and maintain audit-ready records in one platform. 

What is KYB?

KYB, or Know Your Business, is the process of verifying a business customer and understanding who owns or controls it. 

In simple terms, KYB helps answer questions such as: 

• Is this business real and registered?  

• What is the business structure?  

• Who are the directors, officeholders, or authorised representatives?  

• Who are the ultimate beneficial owners?  

• Who controls the business?  

• Is the ownership structure simple or complex?  

• Are there sanctions, politically exposed person or adverse media risks?  

• Does this business customer present a higher money laundering or terrorism financing risk?  

• Should enhanced due diligence be applied?  

KYB is like KYC, but there is one important difference. 

KYC verifies individuals. KYB verifies businesses and the people behind them. 

For example, if a person buys a residential property in their own name, a real estate agency may need to complete KYC on that individual. But if a company, trust or business structure is involved, the agency may need to complete KYB to understand the entity, its ownership and its controlling parties. 

Why KYB matters in 2026 

Australia’s AML/CTF regime is expanding to cover more professional services and high-risk sectors. AUSTRAC says the purpose of the reforms is to close gaps in the financial system that can be exploited by organised crime.  

For Tranche 2 businesses, KYB is not just a back-office process. It becomes a core part of customer due diligence and AML/CTF risk management. 

KYB helps businesses: 

• Prevent criminals from hiding behind companies, trusts or nominees;  

• Understand who ultimately owns or controls a customer;  

• Detect complex or unusual ownership structures;  

• Identify higher-risk customers earlier;  

• Decide when enhanced due diligence is required;  

• Maintain evidence of checks, decisions and approvals;  

• Support ongoing monitoring and suspicious matter review;  

• Create a stronger audit trail.  

Without KYB, a business may only see the front-facing company name while missing the real individuals, ownership links or risk indicators behind the entity. 

KYB vs KYC: What is the difference?

Area	KYC	KYB
Meaning	Know Your Customer	Know Your Business
Who is verified?	Individuals	Companies, trusts, partnerships and other entities
Key information	Name, date of birth, address, identity documents	Business name, ABN, ACN, registration status, directors, officeholders, ownership structure
Main objective	Confirm the person’s identity	Confirm the business exists and identify who owns or controls it
AML checks	Sanctions, PEP, adverse media and identity verification	Business verification, ownership/control review, UBO identification, KYC on UBOs and AML screening
Example	Verifying an individual buyer	Verifying a company buying property or a trust receiving accounting services

In practice, KYB often includes KYC. Once ultimate beneficial owners, directors or controlling persons are identified, those individuals may also need to be verified and screened. 

Who needs KYB verification?

KYB is relevant whenever your customer is a business, company, trust, partnership or other legal structure. 

For Australian Tranche 2 businesses, KYB may apply to: 

Real estate agents 

When dealing with company buyers, company sellers, trusts, developers, investors, property groups or business entities involved in property transactions. 

Conveyancers 

When acting for companies, trusts, partnerships or other legal structures in property transactions. 

Lawyers 

When providing designated services involving company formation, trust services, transactions, property matters or entity structures. 

Accountants and bookkeepers 

When assisting with company setup, trust structures, SMSFs, business advisory, transaction support or other designated services. 

Trust and company service providers 

When forming companies, arranging registered office services, assisting with nominee arrangements or supporting ownership and control structures. 

Dealers in precious metals, stones and products 

When trading with corporate customers or higher-value business clients where ownership and source of funds may require closer attention. 

KYB is especially important where companies, trusts or layered structures are used to transact, hold assets or move funds. 

What information is collected during KYB?

A strong KYB process usually collects and verifies several categories of information. 

1. Business identity details 

This may include: 

• Legal business name;  

• Trading name;  

• ABN;  

• ACN;  

• Registration status;  

• Registered address;  

• Principal place of business;  

• Business type;  

• Industry or sector.  

2. Business structure 

The KYB process should identify whether the customer is a: 

• Company;  

• Trust;  

• Partnership;  

• Sole trader;  

• Incorporated association;  

• Unincorporated association;  

• Government body;  

• Other legal structure.  

Different customer types may require different customer due diligence steps. AUSTRAC provides customer-type guidance for entities such as trusts, companies, partnerships, sole traders, associations, and government bodies.  

3. Directors, officeholders and authorised representatives 

For companies and other business structures, KYB may require the identification of directors, secretaries, officeholders, and individuals authorised to act on behalf of the business. 

4. Ultimate beneficial owners 

A key part of KYB is identifying the real individuals who ultimately own or control the customer. AUSTRAC’s guidance explains that a beneficial owner is an individual who ultimately owns 25% or more of the customer or otherwise controls the customer.  

5. Ownership and control structure 

KYB should help the business understand whether the customer’s ownership structure is simple or complex. 

For example: 

• Company A is owned by one individual.  

• Company A is owned by another company.  

• Company A is owned through multiple layers of entities.  

• A trust owns shares in the company.  

• A person controls the business even without holding 25% ownership.  

AUSTRAC has specific guidance on determining ownership and control structures to help identify beneficial owners for initial customer due diligence.  

6. AML screening 

Relevant entities and individuals may need to be screened for: 

• Sanctions;  

• Politically exposed person status;  

• Adverse media;  

• Other AML risk indicators.  

7. Customer risk assessment 

KYB should feed the customer’s ML/TF risk rating. This may include factors such as: 

• Customer type;  

• Entity type;  

• Business activity;  

• Ownership complexity;  

• Jurisdiction exposure;  

• Source of funds or source of wealth where relevant;  

• Delivery channel;  

• Transaction type;  

• Screening results;  

• Unusual or suspicious indicators.  

What is a UBO?

A UBO, or ultimate beneficial owner, is the real individual who ultimately owns or controls a business customer. 

This matters because criminals may use companies, trusts, nominees or layered ownership structures to hide who is really behind a transaction. 

For example: 

• A company may be owned by another company.  

• That second company may be owned by a trust.  

• Trust may benefit one or more individuals.  

• Another person may control the business even if they are not listed as a direct shareholder.  

KYB is designed to uncover this ownership and control picture so the business can make an informed AML/CTF risk decision. 

The KYB verification process

A practical KYB workflow can be broken into seven steps. 

Step 1: Collect business details 

Start by collecting the customer’s business information, including business name, ABN, ACN, entity type, address, business activity, and contact details. 

Step 2: Verify the business 

The business should be checked against reliable data sources, such as available registry information. 

The goal is to confirm that the business exists, is registered, and matches the information provided by the customer. 

Step 3: Identify directors and officeholders 

For companies, identify relevant directors, secretaries, officeholders, and authorised representatives. 

This helps confirm who is associated with the business and who may need to be included in the due diligence process. 

Step 4: Identify ownership and control 

This is one of the most important step for KYB. 

The process should identify who owns or controls the business customer. Where ownership is layered, the process may need to trace through multiple entities until the real individuals behind the structure are identified. 

Step 5: Identify and verify UBOs 

Once UBOs or controlling persons are identified, they may need to go through KYC verification and AML screening. 

This connects KYB and KYC into one complete customer due diligence process. 

Step 6: Screen for AML risks 

The entity and relevant individuals should be screened for sanctions, politically exposed person status, and adverse media. 

If a potential match or red flag is identified, the case should be reviewed and escalated where required. 

Step 7: Assign a risk rating and keep records 

The KYB outcome should feed into a customer ML/TF risk assessment. 

The business should record: 

• What information was collected;  

• What was verified;  

• Who was identified;  

• What screening results were returned;  

• What risk rating was assigned;  

• Whether enhanced due diligence was required;  

• Who approved the onboarding decision;  

• What ongoing monitoring is required.  

This is critical for audit readiness. 

How AML Guardian automates KYB verification

Syntrico AML Guardian provides a fully automated KYB workflow designed for Australian Tranche 2 businesses. 

Instead of relying on spreadsheets, manual document handling and email follow-ups, AML Guardian helps businesses verify corporate customers, identify beneficial owners and complete AML checks through one streamlined process. 

Automated business verification 

AML Guardian allows users to search and verify business details such as business name, ABN, ACN, registration status and available registry information. 

Where registry information is available, AML Guardian can extract relevant business details to reduce manual data entry and improve accuracy. 

Automated UBO identification 

AML Guardian supports automated ultimate beneficial owner identification. 

Customers can provide ownership and control information directly during onboarding. Where information is available in registry sources, AML Guardian can also check and extract available ownership and control information to support the KYB process. 

This helps identify the individuals who ultimately own or control the business, including directors, officeholders, shareholders or controlling parties. 

Customer-assisted KYB flow 

Where ownership information is not fully available through registry sources, AML Guardian allows the customer to complete the missing information through a structured onboarding flow. 

This reduces back-and-forth emails and gives businesses a clear, consistent way to collect required KYB details. 

Connected KYC for UBOs 

Once UBOs or controlling persons are identified, AML Guardian can trigger the KYC process for those individuals. 

This means the business does not need to manage KYB and KYC separately. Business verification, UBO identification and individual verification are connected in one workflow. 

AML screening 

AML Guardian screens relevant entities and individuals for AML risks, including sanctions, politically exposed persons and adverse media indicators. 

Potential matches can be reviewed and managed through the platform’s case management workflow. 

Automated risk assessment 

KYB outcomes feed into AML Guardian’s customer ML/TF risk assessment engine. 

The platform helps assess business customer risk based on factors such as: 

• Customer type;  

• Ownership complexity;  

• Industry risk;  

• Jurisdiction exposure;  

• Screening results;  

• Transaction or service type;  

• Other risk indicators.  

Case management and escalation 

If the KYB process identifies missing information, complex ownership, potential screening matches or higher-risk indicators, AML Guardian creates a structured workflow for review, escalation and approval. 

This helps staff know what action to take next. 

Audit-ready records 

AML Guardian keeps a clear record of KYB checks, extracted information, customer-provided information, UBO details, KYC outcomes, screening results, risk ratings, notes and approvals. 

This helps businesses demonstrate what they checked, when they checked it and why they made their onboarding decision. 

When is enhanced due diligence required?

Enhanced due diligence may be required when a customer presents higher ML/TF risk. 

AUSTRAC states that enhanced customer due diligence helps businesses identify, assess, manage and mitigate customer ML/TF risks, and that enhanced CDD must be applied in specific circumstances.  

Enhanced due diligence may be triggered by factors such as: 

• Complex or opaque ownership structures;  

• High-risk jurisdictions;  

• Unusual transaction behaviour;  

• Adverse media;  

• Sanctions or PEP exposure;  

• Inconsistent customer information;  

• Reluctance to provide ownership details;  

• Use of nominees or intermediaries;  

• Transactions that do not match the customer profile.  

A good KYB process should not only identify these risks, but also help staff decide what action to take next. 

Common KYB challenges for SMEs

Many small and mid-sized businesses understand that KYB is important, but struggle to manage it efficiently. 

Common challenges include: 

• Manual document collection 

Collecting company extracts, trust deeds, ID documents and ownership information by email can become slow and disorganised. 

• Complex ownership structures 

Tracing ownership through multiple companies, trusts, or nominee arrangements can be difficult without a clear workflow. 

• Disconnected systems 

If KYB, KYC, screening, risk assessment and record keeping are handled in different tools, compliance teams lose visibility. 

• Staff confusion 

Frontline staff may not know when KYB is required, who needs to be verified, or when a case should be escalated. 

• Poor audit trail 

If decisions are buried in emails and spreadsheets, it becomes difficult to prove what was done and why. 

• Delayed onboarding 

A slow KYB process can frustrate legitimate customers and delay business. 

AML Guardian is designed to solve these issues by bringing business verification, UBO identification, KYC, AML screening, risk assessment, case management, and records into one automated workflow. 

Example: KYB for a real estate agency 

A real estate agency is engaged by a company that wants to purchase a commercial property. 

A basic onboarding process may only record the company name and contact person. A proper KYB process goes deeper. 

The agency should ask: 

• Is the company registered?  

• What is ABN or ACN?  

• Who are the directors?  

• Who owns or controls the company?  

• Are there corporate shareholders?  

• Are there trusts involved?  

• Who are the UBOs?  

• Do any owners, directors or controllers appear on sanctions, PEP or adverse media lists?  

• Does the transaction make sense based on the customer’s profile?  

• Is enhanced due diligence required?  

With AML Guardian, the agency can manage this workflow in one system rather than relying on spreadsheets, email attachments, and manual follow-ups. 

Example: KYB for an accounting firm

An accounting firm helps set up a company or trust structure for a client. 

The firm may need to understand: 

• Who the client is;  

• Who will own the company;  

• Who will control the company;  

• Whether a trust is involved;  

• Who the beneficiaries or controllers are;  

• Whether any individuals require KYC checks;  

• Whether the structure presents a higher ML/TF risk.  

AML Guardian helps the firm collect information, identify ownership and control, verify relevant individuals, screen for AML risks and keep records for future audits or review. 

Example: KYB for a law firm or conveyancer 

A law firm or conveyancer may act for a corporate customer in a property transaction, business sale or legal arrangement. 

In this scenario, KYB may involve: 

• Verifying the business customer;  

• Confirming who is authorised to act;  

• Identifying directors or officeholders;  

• Understanding ownership and control;  

• Identifying UBOs;  

• Completing KYC on relevant individuals;  

• Screening parties for AML risks;  

• Documenting the onboarding decision.  

With AML Guardian, these steps can be managed through a structured workflow that supports consistency across matters and staff members. 

KYB best practices for 2026

To prepare for AML/CTF obligations, Australian businesses should adopt the following KYB best practices. 

1. Start with a clear KYB policy 

Your AML/CTF Program should explain when KYB is required, what information must be collected, who approves customers and when enhanced due diligence applies. 

2. Use a risk-based approach 

Not every business customer carries the same level of risk. A simple local company may require standard due diligence, while a complex structure involving offshore entities may require enhanced due diligence. 

3. Identify real people, not just entities 

KYB should always aim to identify the individuals behind the business. 

4. Screen both entities and individuals 

Screening only the company may not be enough. Directors, UBOs and controlling persons may also need to be screened. 

5. Keep evidence and decisions together 

A good KYB file should show what was checked, what was found, what decision was made and who approved it. 

6. Review customers over time 

KYB is not just a once-off onboarding task. Customer information and risk can change, so ongoing monitoring and periodic review are important. 

7. Train staff 

Staff should understand how to identify business customers, when to escalate red flags and how to use the KYB workflow. 

KYB checklist for Australian Tranche 2 businesses

Use this checklist as a starting point: 

• Confirm the customer’s type.  

• Collect business name, ABN, ACN, and registration details.  

• Verify the business against reliable sources.  

• Identify directors, officeholders, or authorised representatives.  

• Identify beneficial owners and controlling persons.  

• Understand the ownership and control structure.  

• Complete KYC for relevant individuals where required.  

• Screen the entity and relevant individuals.  

• Assess customer ML/TF risk.  

• Apply enhanced due diligence where required.  

• Record onboarding decisions and approvals.  

• Store evidence in an audit-ready format.  

• Set ongoing monitoring or periodic review requirements.  

Why KYB should be part of your AML/CTF platform 

Many businesses make the mistake of treating KYB as a document collection task. 

But KYB is more than collecting a company extract or trust deed. 

A proper KYB process should connect to: 

• Customer due diligence;  

• KYC;  

• AML screening;  

• ML/TF risk assessment;  

• Enhanced due diligence;  

• Case management;  

• Ongoing monitoring;  

• Staff training;  

• Record keeping;  

• AML/CTF Program governance.  

That is why AML Guardian is designed as an all-in-one AML/CTF compliance platform, not just an ID verification tool. 

For Tranche 2 businesses, this is important. You do not just need to verify a customer once. You need to show that your business has a working AML/CTF framework that identifies, manages and records ML/TF risk. 

Automate KYB verification with AML Guardian

AML Guardian automates KYB from business verification to UBO identification, KYC checks, AML screening, risk assessment and audit-ready records. 

The platform helps Australian businesses: 

• Verify business customers;  

• Identify beneficial owners;  

• Allow customers to provide missing ownership information;  

• Extract available registry information where possible;  

• Trigger KYC checks for UBOs and controlling persons;  

• Screen entities and individuals;  

• Assess customer ML/TF risk;  

• Manage exceptions and escalations;  

• Maintain a complete audit trail.  

Built for Australian real estate agents, accountants, lawyers, conveyancers and other Tranche 2 businesses, AML Guardian helps make KYB simpler, faster and easier to manage. 

Final thoughts

KYB verification will be a key part of AML/CTF readiness for many Australian businesses in 2026. 

As criminals become more sophisticated, businesses can no longer rely on surface-level information about companies, trusts or intermediaries. They need to understand who the customer is, who owns or controls the customer, what risks are present and what action should be taken. 

For real estate agents, accountants, lawyers, conveyancers and other Tranche 2 businesses, the right KYB process can reduce compliance risk, improve onboarding quality and create a clear audit trail. 

Syntrico AML Guardian helps Australian businesses automate KYB, KYC, AML screening, risk assessments, case management, staff training and audit-ready records in one platform. 

With AML Guardian, KYB becomes simpler, faster and easier to manage – without needing a large compliance team. 

Ready to Be AUSTRAC-Ready Before 29 July 2026?

The deadline is real. The obligations are live. And the businesses that prepare now will be the ones that confidently walk through compliance – not scramble to catch up.

Syntrico AML Guardian makes KYB, KYC, AML screening, risk assessment, and compliance reporting simple – built specifically for Australian Tranche 2 businesses.

👉 [Start Your Free Trial Today] – Get your KYB workflow running in minutes, not months.

👉 [Book a Demo] – See exactly how AML Guardian handles business verification, UBO identification, AML screening, and audit-ready record keeping for your specific business type.

No jargon. No giant compliance team required. Just a smarter way to meet your AUSTRAC obligations.

Spots for onboarding support are limited ahead of the July 2026 deadline – don’t wait.

FAQ’s

1. What is KYB verification? 

KYB verification is the process of verifying a business customer and understanding who owns or controls it. It usually includes checking business registration details, identifying directors or officeholders, identifying beneficial owners, screening relevant parties and assessing AML/CTF risk. 

2. What is the difference between KYB and KYC? 

KYC verifies an individual customer. KYB verifies a business customer and the individuals behind it, such as directors, authorised representatives, shareholders, beneficial owners or controlling persons. 

3. What is a UBO? 

A UBO, or ultimate beneficial owner, is the real individual who ultimately owns or controls a business customer. AUSTRAC guidance refers to a beneficial owner as someone who directly or indirectly owns 25% or more of the customer, or otherwise controls the customer.  

4. Why is KYB important for AML/CTF compliance? 

KYB helps businesses understand who they are dealing with, identify ownership and control risks, detect higher-risk customers and keep evidence of customer due diligence decisions. This is important for managing money laundering and terrorism financing risk. 

5. Do real estate agents need KYB? 

Real estate agents may need KYB when dealing with company buyers, company sellers, trusts, developers, investors or other business customers. KYB helps identify the entity, the people behind it and the AML/CTF risk associated with the customer. 

6. Do accountants and lawyers need KYB? 

Accountants and lawyers may need KYB when providing designated services involving companies, trusts, business structures, transactions or entity arrangements. KYB helps identify business customers, ownership structures and beneficial owners. 

7. Can AML Guardian automate KYB? 

Yes. AML Guardian provides a fully automated KYB workflow. Customers can provide ownership and control information directly, and where information is available in registry sources, AML Guardian can check and extract available information to support UBO identification. AML Guardian can then trigger KYC, AML screening, risk assessment, case management and audit-ready record keeping. 

8. Is KYB a one-time check? 

KYB usually starts during onboarding, but customer information and risk can change over time. Businesses should consider ongoing monitoring, periodic reviews, and updates when ownership, control, or risk indicators change. 

Disclaimer:

This article provides general information only and does not constitute legal or regulatory advice. Businesses should consider their own circumstances and seek professional advice where required.