Knowledge · Defined
KYB verification tiers, defined
A verification tier grades the strength of the evidence behind a KYB check, ranked by how independently a business’s existence can be corroborated. A pass-or-fail check treats a five-year business and a week-old shell the same, because both hold a registration. Tiers report what that verdict is worth.
Tiers measure how difficult the supporting evidence is to fabricate — not how profitable, established, or low-risk a business is.
The full breakdown
The two-business walkthrough, and the evidence behind each tier.
Questions
- What is a KYB verification tier?
- A verification tier grades the strength of the evidence behind a KYB check, ranked by how independently a business's existence can be corroborated. Tier 1 is registration paperwork the business filed about itself. Tier 3 is multiple independent signals with time depth.
- What's the difference between Tier 1, Tier 2, and Tier 3?
- Tier 1 is self-reported paperwork: registrations and EINs. Tier 2 adds one independent signal — a licence, a web presence, a third-party review. Tier 3 is multiple independent signals with time depth: sustained reviews, a verified location, twelve months of activity.
- Is a business registration proof that a business is real?
- No. A registration shows that someone made a filing. It does not prove the business operates independently. It is self-reported, and it is the easiest part of a business identity to fabricate. Independent evidence is what raises assurance above Tier 1.
- How does Enigma decide which tier a business gets?
- Enigma checks whether independent evidence exists across five categories: government records, operating location, revenue and transaction activity, web presence, and review history. More independent evidence, with time depth, means a higher tier.
- Can a risk team set its own policy instead of trusting a single verified-or-not flag?
- Yes. The tier is a default verdict, not a black box. Because the underlying signals and the evidence behind each one are shown, a risk team can accept the tier or write its own policy against the signals directly.