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The advancements in ICT (Information Communication Technology) enables well-established firms and startups to create their digital footprints which have furthermore led to the increase in financial crimes in today’s digitized world. All of this calls for a rapid and secure KYB (Know Your Business) system authenticating the entities for safe partnerships and corruption-free deals.

At times, business entities looking forward to collaboration with a particular firm. Or senior-level executives of that company themselves involved in illegal activities. By joining hands with any corrupted organization, a business can directly affect its reputation in the marketplace. This creates the danger of the organization getting blacklist and facing large amounts of money as setbacks from regulatory bodies. The KYC  (Know Your Customer) process can be carried out as well, both processes are pretty much the same.

This entire procedure ensures the legality of the business organizations and the high-level employees to eliminate any risk of fraud or criminal activity. KYB can perform a background check on your business and alert you if any scammer has eyes on the business.

The KYB verification solutions used globally in multiple industries such as:

How to Perform KYB Checks?

There are a certain number of documents mandatory for KYB affirmation but they differ from country to country depending upon the jurisdiction. However, few common things must be present to perform the operations:

Alon with mentioned records, a number of companies demand open proof of government and global corporate registries. Post confirming all of this, the PII (Personal Identifiable Information) of the beneficial owners and executives collected through means of national and international ID proofs such as photo-based Id, passport, bank account details, annual financial reports or ledgers, current addresses, and DOB.

The KYB verification solutions possess access to regional and top-secret databases like FBI, Interpol watchlists, PEP (Politically Exposed Person) list, and national data registration authorities, provided sets of information are matched against the records in a few seconds proving the credibility of the organization.

The validation of the data is essential and positive results encourage indulging in collaborating with the firms.

However, one-time verification does not guarantee anything. The KYB checks must be conducted at repeated intervals. This stage requires human intelligence as well. The risk of any sort of financial crime detected automatically in real-time and the case investigated to its core. A sudden increase in the volume of trade or goods ordered and deals taking place on credit is the prime indication of running a check on the organization and its stake owners. It’s basically like the constant AML screening. 

Importance of KYB Verification Solutions in the B2B Market

The handsome amounts of fines charged by the regulatory bodies lead to serious attention being paid towards the constant screening of clientele. An updated and efficient system for Kyb checks reduces the manual workload and creates a swift process of customer onboarding and proceeding further with older strategic alliances, in case of not having one, the organization makes the process a bit time-consuming causing the other party to walk out. 

In the year 2020, there were almost 350,000 reports being filed against online retailers, a loss of $245 million incurred. Any association with such businesses affects the reputation of other companies in the market as well. Hence, the KYB checks are imperative to run throughout. 

The  prime purpose of KYB verification solutions is to help business entities in:

Enhanced Due Diligence (EDD):

The AI model used in EDD in KYB verification solutions is capable of managing abundant data of countless customers and it includes microservices like special Application Program Interface (API), able to set apart and analyze data of an owner of a specific business entity in no time. The program interface can also cross-refer to data across multiple databases.

Conclusion

With retailers and businesses moving to digital space and with the advent of online banking as well, the KYB verification solutions are in high demand to avoid high fines for noncompliance and ensure maximum customer expansion with zero degree of risk. The KYB checks in multiple industries have been proven beneficial, eliminating extra manual costs in AML screening and protecting the corporation’s financial position in the market. The AI-empowered solution guarantees absolute verification with commendable API and speed.