Business verification services for KYC and Customer Due Diligence are crucial to recognise the ultimate beneficial ownership structure.
Businesses have to be more careful in their customer onboarding process that offers their services to businesses, instead of customers. According to a survey, B2B merchants say that 19% of their online purchases have attempted online fraud.
That’s why it’s very crucial to secure business documents in the current regulatory landscape before engaging in other activities. For this purpose, the KYB process helps organizations to analyze the companies’ inside information. Personal and potential user info of higher management handles the process of that client company.
What is Business Verification?
Know your business is the review of a company, business, and industry against techniques of money laundering. It allows users to create policies and evaluate suspicious transactions or activities. Businesses can determine if the company they are doing business with is just a shell or legit that is currently on paper via KYB checks.
What Does Know Your Business (KYB) Mean?
A KYB supports businesses to analyze and determine if they are dealing with authentic and reliable business entities. It’s their responsibility to explore the status of the company. AML investigates proper business documents that are in demand by regulators, especially in developed countries where users have to deal with foreign entities.
Instructions like Electronic Identity verification-eIDV and the European Union 4th AML directive are a few examples that instruct how knowing your business laws can affect corporate entities.
On the other hand, in the U.S., document attestation measures dictate the norms to determine KYC service providers to offer different business verification entities.
Few KYC service providers support diverse business verification tools to collect and analyse business verification information. Few identity verification processes perform these services in seconds with the help of online software tools.
Documents like anti-money laundering services and identity documents can also be verified through top management by using know your business services.
Same as know your customer, KYB verifies businesses by officially registering data utilizing APIs. By using the jurisdiction code and registration number of the business, a professional KYB service provider collects reliable and accurate business information.
How Know Your Business (KYB) Safeguards Business Interests?
Based on AI, online service providers determine and analyze the true identity of verifying individual identity. Not only this, but it can also check the financial risks that are attached to the individual with AML regulatory compliance solutions.
With anti-money laundering services, users can also search for the presence and involvement of any official partner company in any financial risk database or watchlist. Online software banks with their huge data banks have the potential to serve customer due diligence on their behalf.
Know Your Business (KYB) might be the main purpose of any identity verification services. But the same services can be utilized to investigate the accuracy of any corporate entity. The KYB services are really valuable for financial institutions that handle funds from corporate entities and extensive customer databases.
Brokerage firms, dealers and banks of various investment institutes have to be extremely careful against any business entity that needs to partner up with them.
Automated ID Verifications to Identify B2B Frauds
Conducting the Know Your Business (KYB) process is very hectic that might require specialised conventional (manual) resources. But, automated business verifications services are very easy and handy to use.
Automated KYB services are a powerful step in fighting B2B fraud. Primarily, conducting business online brings a huge volume of online scams. Secondly, automated company verification services provide strong solutions that prevent potential fraud attempts that are worth millions of dollars.
They are not the perfect form but they support businesses to secure themselves from multi-million dollar fines that a controller can smoothly slap on institutions if they found any breach in information.
Business Verification Service-Worth the Time
Many banks have already tasted the slow unbearable pain of KYC verification for their remote banking service, transaction authentication and customer onboarding. That’s the reason why many large financial institutions that are in dire need of KYB service, find it hard to deal with or trust KYC service providers.
But with identity verification services based on Artificial Intelligence, it’s easier for them to conduct business verification in a few minutes. With OCR and Global Business Verification, many online software becomes the ultimate reason to verify and identify real-time businesses.
Business verification solutions have the ability to determine the true individual personality with the assistance of authentic identity information or documents like passports, driving licences and ID cards.
With machine learning algorithms, the software identifies any attempt of forging documents or ownership structures that can be easily detected.