With the technological advancement in the modern world, digitalization has reduced the transparency between businesses and the client. Due to this reason, the businesses are unaware of their clients by which they are making relationships which eventually leads toward suspicious activities. For example, one business onboards a client that exists on paper but is not reality or may involve financing terrorist groups. Nowadays, Know your business(KYB) is trending among corporations. KYB evolved from the key concept of knowing your customer (KYC) which is becoming viable for regulatory corporations. This helps out corporations in verifying a business before getting into any kind of relationship.
Know your business procedure enables the corporations to determine the authenticity of the business entities whom they want to onboard. This gives peace of mind for the corporate that they are making a relationship with the verified company which doesn’t possess any kind of potential risk. The regulators have provided AML know your business checks for businesses which are mandatory for the corporates to employ them, especially when the corporates tend to deal with international entities. The business is obliged to adopt customers due to diligence measures to verify the real owner of the corporate entity. Under KYB customer Service, the corporates collect the clients’ documents to perform verification. Therefore the involvement in illicit activities such as money laundering, counter-terrorist financing, etc is easily determined.
The AI-powered know your business solution is capable of identifying the real identity of the corporate owner, stakeholder, and ultimate beneficial owners. It also determines if any of them possess financial risk with the help of AML compliance procedures and also checks the presence of the company participant in the global watchlist and financial risk databases. ongoing screening is done in order to check the involvement of any of the business entities in crimes. Kyb verification solutions are viable for the fintech industry which tends to handle transactions of massive businesses entities. Thus, getting knowledge regarding the other parties can save the corporations from identity fraud.
Know your business works the same as know your customer. Kyb solution verifies the business identity by retrieving the corporate information from the officially registered data.
The business information is gathering ranging from registration country, the registered address, type of company, ultimate beneficial owner, stakeholder, and registered trademark for verification
In this the instant verifiable business information about the corporate finance such as financial statements, register reports, annual accounts report, etc for verifications
With the corporate business statements, the business can stay put with the changes in the business. The change in business management reflects the business environment which indicates the need for following up the information regarding corporates
The detailed information regarding the business networks is obtained which includes the list of subsidiaries ( child and sister companies). The need of doing this is to verify the registering country of the business, the nature of business, and the history of transaction they have made
The modern world is full of challenges. The businesses are struggling to make security matters better to fight the fraudsters. The automated know your business procedure is best in the market which promises business identity fraud prevention.
The increasing number of frauds like ransomware, malware attacks, identity theft, money laundering, terrorist financing is affecting the business sector. For a business like banks, insurance companies, or a health business, it’s quite difficult to onboard clients, partners, and suppliers. The businesses never get the hints that are actually on the other side. Through KYB checks, the corporate can verify the real identities of the clients, thus preventing the business from criminal activities.
As a precautionary measure, the corporates are obliged to employ KYB solutions to mitigate the risks of becoming victims of fraudsters. With the technology-enhanced KYB checks the corporate information can be accessed to verify business activities. Eventually, this helps out the business to maintain the company database for safe workflows. The corporate reputation relies on how strengthened due diligence processes are implemented. Thus verifying the UBOs is as important as verifying the corporate ownerships
Know your business is the ideal way to put off the rising number of identity fraud and make businesses grow. It’s obvious the sustainability of the corporations depends on how satisfied their customers are with their deals. The utmost priority of online business is to give clients a protected environment to gain trust. Therefore, the corporates are obliged to implement KYB checks in order to prevent fraud.