GlossaryEN1 min readUpdated: Jun 26, 2026

Know Your Business

A new business inquiry arrives—but before a freight forwarder or logistics provider signs any agreement, it systematically examines who the prospective partner actually is.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www2.deloitte.com/us/en/pages/risk/articles/know-your-business-kyb.html

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Definition & Explanation

A new business inquiry arrives—but before a freight forwarder or logistics provider signs any agreement, it systematically examines who the prospective partner actually is. Know Your Business (KYB) refers to this structured assessment of a supplier's or counterpart's organizational structure, business model, compliance framework, and financial soundness. The review does not end at contract signature; it continues throughout the relationship, since changes in ownership or business activity can trigger new risks at any point. In customs and sanctions contexts, KYB is indispensable: operating without visibility into a counterpart's true nature risks inadvertent breaches of export control or embargo regulations. KYB and KYC (Know Your Customer) are complementary—KYC focuses on customer identity, while KYB evaluates the reliability and compliance posture of the business entity itself.