Business Verification Trends & Challenges in 2024

The corporate world is unpredictable due to economic crises, environmental change, and technological advancements. As a business owner or an individual, you can not manifest what will happen next. To unveil what lies ahead? We compile this article with our data analysts and business verification experts as well as explain how you can uphold these upcoming regulatory challenges. Knowledge about future trends will provide companies and compliance agents the upper hand on law enforcement agencies and competitors. 

Prediction #1 Global Legal Entity Identifier Foundation (GLEIF) 

The Federal Stability Board (FSB) designed the global legal identifier organisation in 2014. In 2024, it will design the worldwide identity under the LEI Regulatory Oversight Committee (LEI ROC). That will overcome the challenge of the distinct regulatory landscapes of different nations. After its development, this will become a primary global Legal Entity Identifier (LEI) database. The GLEIF will reap the companies’ various data and their duty to authenticate the documents in a standardised form. Implementing the GLEIF assists businesses in growing independently at the rate of adopting the latest regulatory frameworks. 

Prediction#2 Brexit Legislations

Brexit is used for the UK after its exit from the European Union in 2020. In 2023, Brexit organised the first EU-UK Financial Regulatory Framework in which they designed legal measures in the continent to prevent money laundering and terrorist financing. In 2024, their next meeting will be arranged in the spring, in which they will sign an MOU to enhance information sharing and collaboration with various law enforcement agencies. They will also be obliged to further rigid measures for smarter service and financial framework in the UK. This new legislation in the UK will be implemented in 2024, raising the bar for financial service providers in business verification compliance. 

Prediction#3 Online Safety Acts

Various rigid measures are set up for online service and product providers worldwide, including the UK, US, and MENA regions. These regulations are mandatory for businesses to comply with, which will assist them in keeping their consumers, especially children, safe. The EU Digital Markets Act (DMA) enforced online service providers to bolster their security. The US INFORM Consumers Act required the US marketplace to implement strict derivatives and maintain adequate security measures in compliance with the business verification process. These regulations indicate that 2024 is a strict regulations year for online service or product providers. They also ensure that big companies or “gatekeepers” such as Amazon, Google, and Meta share customer data with them. And inform consumers what type of information they are syncing from their devices for advertising.  

Prediction#4 DUNS Number 

DUNS is a nine-digit number used to register the company on different platforms. It assists other businesses in verifying their registration and permits of the company to work in that particular industry. The Legal Entity Identifier (LEI) is creating the same 20-digit number in 2024 to show companies’ documentation of the globally registered businesses. This will enhance corporate transparency. The LEI Regulatory Oversight Committee first aims to implement this in G-20 countries, including the US, UK, Germany, etc. 

Prediction#5 Digital Trust Officers (DTO)

A Digital Trust Officer (DTO) is the new game changer in business operations. DTO implements derivatives that enhance brand loyalty. The DTO ensures secure applications or websites and is responsible for companies’ transparency, trustworthiness, and streamlining the customer experience. Research indicates that the digital trust software market will grow at a CAGR of 13.7%. Our experts predict that in 2024, the DTO will be essential for all online businesses to unveil complex structures, convenient customer experience, business onboarding, and regulatory compliance. 

Challenges Companies Face During Business Verification in 2024 

Regulatory Challenges 

In the wide business landscape, regulatory compliance changes constantly. In 2024, various strict laws will be implemented on businesses. These regulations will impact both online and offline businesses. The regulatory adoptions and rulemakings will be a significant challenge for businesses such as EU supply chain due diligence, CFPB, funding structure, SEC climate disclosures, charters for novel institutions, crypto/digital assets online safety act, etc.    

AI Complexity 

The advancement in technology is a new challenge for businesses. In the following year, 2023, we noticed various adoptions through machine learning and AI technology, which will continue in 2024. We are expecting this will change the entire business verification process. It also changes or can say, upgrades the scammer’s technique and assists them in counterfeiting companies as a professional. There are various free AI platforms to create a bogus company with fake documents and deepfake technology to create any picture. Unfortunately, it is the beginning of the AI world. 

ESG Impact 

Environment, social, and governance (ESG) is another challenge impacting the business verification process. After digitisation, the global economy is simultaneously linked with each other, and countries’ decisions impact the worldwide corporate sector. Businesses also now fight against the constantly changing environment. For example, COVID-19 created a worldwide recession, and according to the IMF, the countries are still struggling to recover from pandemic losses. 

Cyber Threats 

Advancements in technology allow cyber scammers to attack businesses with simple techniques. Protection of the company’s confidential data is essential for businesses in 2024. There are massive loopholes in businesses to combat professional cyber attackers. 68% of worldwide corporate experts claim that financial crimes will increase in 2024, with cyber threats and data breaches as the biggest navigators.  

Related: How Does Document Retrieval Service Help in Business Verification?

Role of The KYB in 2024 

The KYB’s automation system is all set up to overcome these challenges and assist companies in complying with the latest 2024 laws. Our experts constantly monitor the ESG and regulatory bodies to make adequate decisions in our KYB compliance measures. This will help our partner companies safeguard themselves from hefty fines. 

The KYB is the primary data provider for business verification with 250+ databases with over 300M companies’ information, whether the company is registered nationally or internationally. With the enhanced UBOs due diligence, we provide a 100% accuracy rate. Moreover, we centralised the reports to unveil the complex ownership structure. For the detailed overview talk to our expert Now!