Navigating The Complexity of Ownership From The Lens of Sanction By Extension
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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
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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.
27 September, 2023
Payment and banking firms conduct Know Your Customer (KYC) verification to avoid becoming the target of criminal networks. The same applies to any entity. Before collaborating with other companies, evaluating the risks they may pose is crucial. This is where KYB onboarding comes to the rescue, mitigating the risk of fraud and helping ensure your business complies with Anti-Money Laundering (AML) and Know your Business (KYB) regulations.
Know your business is the verification process carried out to check a corporate counterparty’s legitimacy and analyze the risk levels associated with that organization. A comprehensive business onboarding process helps prevent financial crimes like terrorist financing and money laundering. It helps entities maintain regulatory compliance and avoid heavy fines. Understanding the entity’s ownership structure facilitates you in making wise risk-based decisions about which firm is secure to work with.
Business verification solutions help financial firms and large companies perform thorough corporate due diligence before collaborating with entities and conducting business deals. KYB uses data science and machine learning to analyze firms’ loan histories, credit histories, and financial health to give detailed information about business partners, revenue growth, and certain risks. Using know your business solutions will help onboard legitimate organizations to drive higher engagements.
If the client is an individual, then KYC onboarding is performed. However, if the customer is a business entity, KYB onboarding is conducted to check its legitimacy. It is important to note that both onboarding checks do not follow similar rules.
Fintechs and many growing financial firms may switch from targeting individual clients to corporate customers while they expand. However, the data that needs to be collected to maintain regulatory compliance can be more complicated when performing the KYB process than KYC.
The corporate onboarding process helps to verify the legitimacy of a firm’s financial operations, the source of its capital, AML risks, and organizational framework.
Here’s the data you need to collect and verify when performing an onboarding KYB process:
The corporate client onboarding process requires basic details like company name and address for verification purposes. Moreover, you should also gather and authenticate the corporation’s legal identity and official documents, such as articles of incorporation, company registration certificate, and certificate of incorporation.
Obtain the full names, addresses, contact details, and IRD numbers of the potential customer’s point of contact and gather the same details about the CEO of the business, the other C suite, and Ultimate Beneficial Owners (UBOs). This can be conducted through validating government-issued identity documents such as driver’s licenses and passports.
Collect data about the firm’s source of wealth, including bank statements, financial statements, and tax returns. Monitor the customer’s transactions to check for unusual activity, such as large transactions or transactions with high-risk entities.
Perform a comprehensive risk assessment, focusing on the risk of business operations in the country your potential business partner operates in. Conduct Enhanced Due Diligence (EDD) checks in case of high-risk jurisdictions or potential high-risk customers.
When performing corporate banking onboarding, ensuring AML compliance is crucial. This can be done by performing Customer Due Diligence (CDD), ongoing monitoring, suspicious transactions reporting, and record-keeping.
Screening every transaction and firm is not feasible. You need a seamless corporate onboarding process that functions quickly and automatically without compromising your business operations.
KYB onboarding is a challenging process as it deals with volumes of business data. Doing it manually requires a huge team of analysts, compliance officers, and IT experts. The team will create watchlists for every screening category, collect data, and prepare forms. After that, they manually verify every business partner, which is time-consuming.
Doing KYB verification manually can take much of the team’s time to verify an organisation and finish onboarding. It may negatively impact your partnership and the organization’s overall outcome. Rather than building a team, outsourcing is a better option, saving your team’s time for demanding and urgent tasks.
Apart from outsourcing, another option is to employ a KYB onboarding solution available online. You can still have a compliance officer to work with the business in collecting documentation for obtaining the basic data. The KYB onboarding process can be conducted in the application with different checklists, screeners, and customization options. The complete KYB onboarding process will be performed seamlessly in no time. You only have to pay subscription charges monthly or annually, and the rest is onto the solution to get the onboarding done for you.
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