Navigating The Complexity of Ownership From The Lens of Sanction By Extension
Tuesday, 30th April. 13:00 - 14:00 London Time (GMT+1)
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The KYB serves as the primary data source for verifying businesses and conducting corporate due diligence in over 250 countries and states.
Navigating the Complexity of ownership from the lens of Sanction by Extension
Mitigating Business verification complexity with The KYB in MENA Region
Onboard businesses with our swift KYB verification.
Expand globally without facing non-compliance challenges
Identify high-risk corporate clients while uncovering UBOs
Mitigate the risk of onboarding a shell company.
Partner with trusted companies and beneficial owners
Fortify your supply chain and ensure enhanced security
Mitigating Business Verification Complexity with The KYB in MENA Region
API Integration
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KYB stands for Know Your Business, which is a due diligence process that companies use to verify the identity and legitimacy of their business partners or customers.
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31 July, 2023
Know Your Business (KYB) checks have become imperative because of the continuously increasing fraud and tightening compliance requirements. It helps minimise the risks associated with transacting with illegal entities, both in the existing and prospective businesses.
Trustworthy and genuine companies are essential for business relationships today. The Ponemon Institute found that non-compliance with KYC & AML regulations results in companies paying around 4 million dollars. A KYB can verify business identities based on company registration numbers (CRNs) and records of business owners.
An organisation’s due diligence assessment is done to prevent money laundering, suspicious transactions, and terrorist financing. Corporate experts can use the data to design policies and evaluate abnormal patterns. Know your business services can also reassure professionals that legitimate companies are partnering with your company. Shell corporations will not be able to exploit real companies in this way.
When collaborating with regulatory authorities, foreign companies must comply with anti-money laundering regulations from agencies such as the FATF and the FCA. In the modern-day corporate sector, know your business verification laws are dictated by electronic ID verifications and anti-money laundering directives.
There are many reasons why modern enterprises should choose Know Your Business Services, but here are just a few of them:
It is extremely important in modern times for business relationships to be based on mutual understanding and interest. Furthermore, corporations do not have control over their partners’ third-party vendors. Therefore, ongoing verification can facilitate the development of a secure and stable partnership between businesses. As a reliable approach to establishing trust and ensuring safe communication, Know Your Business (KYB) standards are of great value.
Using know your business, corporations can forgo traditional validation methods and establish an entirely new sense of authenticity. Companies can benefit from this strategy by increasing sales and achieving mutual goals in a timely manner. KYB verification assures unbeatable security in addition to high trust and greater reliability. Essentially, modern organisations must adhere to business compliance when establishing business-to-business relationships. Through KYB verification, companies can acquire information about their partners, such as the ultimate beneficiary chain.
Financial crimes are rising, and law enforcement agencies must follow the latest regulations. The Law Secrecy Act (BSA) was introduced by legislators in the late 1990s to combat tax evasion caused by illegal drug trafficking. According to the guideline, bank operators are responsible for reporting abnormal user activity, such as higher-than-$10,000 monetary transactions. AML & business verification services were founded on such standards to combat money laundering. So, in 1990 and 1989, FinCEN & FATF were established.
It encourages financial institutions (FI) to perform KYB checks to mitigate money laundering crimes as outlined in the 6 AMLD, the 6th Anti-Money Laundering Directive. Compliance with AML safeguards corporate interests from external threats. Thus, implementing anti-money laundering measures and knowing your business has become mandatory.
All commercial parties rely on conversion rates to achieve B2B marketing milestones. Business entities benefit from reliable connections because they facilitate good communication. With know your business, partner organisations can benefit from a fast, convenient approach. Having multiple identity checks facilitates collaboration between corporate entities. Hence, you can boost sales and enhance your market reputation. The more trust a business has, the more sales it will generate and the higher the conversion rate. A Hubspot report indicates that page visitors convert at a rate of 20%-25%.
Customer satisfaction is your top priority. Businesses must assure that their customers’ data will be kept safe and secure when they use their platform or provide access to their data. All businesses should strive to provide a seamless experience for customers, which means good data use and a customer-centric approach. The KYB feature can easily be integrated into apps, making onboarding for users a snap.
Unfortunately, digital products are more prone to identity fraud and theft. When registration is completed, some fintechs do not validate user information beyond a valid ID. As a defence, minimal checks enable them to onboard employees faster. Implementing a speedy and safe identity verification process is the best way to curb fraud.
It can be beneficial to digitise and secure new business onboarding processes to reduce operational costs. You can cut costs with modern identity verification providers by managing your business relationships better.
Know your business processes will ensure that only legitimate businesses are onboarded by businesses that invest in KYB processes. When choosing a business to work with, businesses need to ensure that the company is trustworthy and genuine. KYB verification processes can assist in this process.
By verifying know your business continuously, businesses would always know they are dealing with real companies. By implementing KYB processes, businesses can avoid shell companies. The only purpose of these shell companies is to defraud other businesses through their paper-only existence. A shell company is where Politically Exposed Persons (PEPs), blacklisted individuals, and criminals hide. Identifying these dubious figures would only be possible with KYB processes.
Know your business processes ensures safe business transactions. By securing business owners against illegal activities, KYB creates confidence in the business community. To reveal the calibre of the people behind a company, KYB checks verify all Ultimate Beneficial Owners (UBOs) and shareholders.
Business-to-business (B2B) relationships are secured through these additional steps businesses take. Knowing your UBO gives you an advantage over your competitors. KYB prevents money laundering and other illicit financial crimes by verifying the ultimate beneficiaries of a business.
Verifying KYB documents makes businesses less likely to be misled into making the wrong decisions based on counterfeit documents. By tracking individual business owners and shareholders through UBOs, businesses can prevent shell company fraud. KYB procedures reduce identity theft. As a result, businesses can capitalise on opportunities to scale their operations.
Business partnerships built on trust result from implementing know your business solutions. As a result, corporate conversion rates can be improved whilst operational costs can be minimised. Businesses that work in a business-to-business environment should take KYB steps.
In addition to GDPR compliance, corporate services can also be made PCI-compliant with the help of third-party vendors. The business owner can avoid hefty fines and maintain their credibility in the market. Furthermore, it gives businesses a competitive edge in a tough market.
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