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September 29, 2022 9:33 AM
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Know your business (KYB) is similar to the well-known Know Your Customer (KYC). KYC is the process of knowing your customers, whereas KYB is referred to as knowing your business. This is an identity check module for business-to-business (B2B) corporate relations. KYB is focused on identifying and authenticating different companies and suppliers. Businesses are required to perform KYB checks of other companies with whom they do business to get a clear picture of their credibility. This is not only an identity check, but it also measures the authenticity of business-to-business affiliation on both sides. The identities of business owners and other stakeholders are verified by scrolling through public registers and automated AML systems. Verifying business is the utmost priority of all B2B industries. 

 

What does KYB technically mean?

Know Your Business (KYB) is a business verification module processed under Artificial Intelligence (AI). This process verifies authenticity against money laundering and other sanctions data. These particular security checks ensure a corporation that they are dealing with a faithful organization and not a mailbox company. 

Concerned authorities, majorly in developed countries, demand an authentic anti-money laundering (AML) report while dealing with overseas companies. Know Your Business further verifies the history and official statistics of the company to make sure that they have no anonymous records of any fraud or money laundering. KYB checks authenticate and verify the company’s existing and prospective customers’ industrial information and also the details of the senior management that manages the day-to-day operations. 

Detailed Know Your Business Demo

 

Initiatives and procedures

The business verification services, once validated, KYB checks are applied to get complete legal knowledge about the company. The company’s verification and KYB procedures are executed to prevent possible chances of money laundering crimes or some kinds of terrorism. activities. But this is not that easy to verify in a company because, to analyze data, the system demands have to be fulfilled under several variations, which are,

 

  • Registration documents 
  • The address of the company 
  • License documents 
  • Identities of Managers and Owners

 

The companies have to be consistent in providing the system with what it needs. Under KYB checks, the identities of the company’s owners and managers are verified, especially those who are more than 25% shareholders. KYB checks are conducted on an ongoing basis to ensure that the credibility of managers and owners is maintained. 

 

KYB’s Verification Steps 

  • Collecting Companies’ Data 

Businesses set requirements for verification and the types of documents they accept.

  • Using questionnaires 

Businesses can collect additional information from the set companies. Preset Quessionarie templates are available for this. 

  • KYC verification of business owners (UBO)

Businesses can always see the company’s structure via an interest-based designed dashboard. Here they learn about individuals, ownership percentages, and verification status. 

  • Uploading Documents 

Businesses upload their certificate of registration, articles of registration, excerpts from the state, shareholder registry, and directors’ registry.

  • Obtaining a company report

After all the required data is uploaded, checks are performed. All the information provided is scanned under the regulations of the concerned authorities. 

Automation in KYB 

Inspecting corporate structures can be very challenging because they sometimes involve several companies, nations, and jurisdictions. Manual know-your-business checks can take a long time and are susceptible to human error, fraud, and corruption. Wherever practicable, organizations with nothing to hide will be delighted to submit to electronic identification verification. This enables access to KYB compliance with electronic authentication and automates the verification process.

Businesses provide sophisticated AI-integrated automated processes that lower the likelihood of risk and fraud, increasing compliance with AML regulations. Companies can concentrate more on tasks that add value and can contribute to business growth. Thanks to these business verification services for helping companies in such a responsible way. 

These automated KYB checks fetch data from various government data sources.

 

  • Global Corporate Registers 
  • Government Registers and Public Records 
  • Global PEP and Sanctions databases 

 

Real-time monitoring institutes worldwide update data very efficiently and on a regular basis, which is why the KYB process is fast and authentic. 

 

Conclusion 

In conclusion, organizations greatly benefit from KYB’s verified business solutions. Companies may get all the information they need: corporate structures, register records, identification of ultimate beneficial owners, etc. in one simple window with access to enhanced due diligence KYC checks. 

Ultimately, company verification helps businesses confidently sign deals with other businesses. The process enables continuous and automated data retrieval and monitoring to minimize the risk within existing collaborations. To secure your business relationship, comply with AML obligations, enhance B2B conversion rates, and reduce operational costs, you demand a worthwhile KYB verification service.

 

 

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