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Check Verifying Services – Protects Businesses From B2B Frauds

by William Beel

The changing regulatory landscape and increased vulnerability to corrupt activities specify that business verification is foremost for businesses seeking long-term stability. Establishing business relations with other corporations leaves no room for illegal activities. With the help of advanced technologies, KYB solutions can track businesses involved in money laundering, corruption, and undercover transactions. Regulatory requirements of KYB and AML indicate that businesses need to secure their operations and prevent illegal transactions from their platform.

What is KYB or Business Verification?

Know Your Business verification process performs due diligence analysis of corporations and industries against criminal activities such as money laundering and terrorist financing. Enterprises can develop policies and monitor suspicious activities. It facilitates businesses to identify authentic vendors and third-party suppliers that are present on paper. With business verification, businesses can avoid transactions with corrupt companies and shareholders.

Issues In KYB 

One of the major challenges of KYB compliance lies in obtaining information of ultimate beneficial owners, particularly in countries that do not require businesses to submit related documentation. The lack of business information will make it difficult to investigate the authenticity of business and money sources, resulting in non-compliance penalties.

Accessing the data in the right format and at the appropriate time is also a challenge particularly if the business structure or management changes with time. The storage and interpretation of information depend on many factors, it is focused on business utilizing manual due diligence procedures.

Process Of Business Verification

Business verification solution uses advanced APIs by which businesses are verified against authentic information extracted. Registration number and jurisdiction code are required for the KYB solution to collect business information. The due diligence analysis becomes more quick and accurate with artificial intelligence-powered KYB checks. It will help businesses to reduce the time and effort required for manual verification with this process.

Following are the steps of KYB checks:

Corporate Identity

In this process, a comprehensive check of business background is done. This check involves inspection of the business’s registered address, trademark, current status, Ultimate Beneficial Owner’s (UBOs), business type, and jurisdiction. If the business had a previous name, it is also analyzed.

Corporate Filings

Corporate files include business information with which corporations can authenticate quickly. This information involves various documents shared by the customer. After successful verification of these documents, the process checks the business networks.

Corporate Networks

Corporate networks provide information regarding the parent enterprises and child subsidiaries of the corporation. KYB process of business network analysis helps in verifying this information. Changes in business 

Corporate Statements

Corporate statements help companies to look after the changes in the management. Changes in shareholders or directors represent that the business environment needs follow-up information regarding business matters. 

How Does Business Verification Help?

To prevent fraudulent transactions, financial regulatory authorities are initiating stringent regulations. The 6AMLD is to be executed soon which indicates no tolerance for financial organizations or businesses in the future. Hence, KYB is crucial for the transparency and efficacy of organizations doing business. 

KYB solution for businesses is the cost-effective and robust solution for performing the due diligence analysis of the enterprises. The verification process of businesses has become easier and more accurate. With the incorporation of APIs and data-driven mechanisms, the data can be extracted easily.

Credible B2B Relations

Businesses can make use of KYB services to prevent fraud. With the right combination of support and technology, complete coverage of business structure and financials can be retrieved to track the business activities. The Business’s reputation depends on the implementation of effective kyb checks and diligence processes. As it is crucial to verify Ultimate beneficial owners (UBO’s) of associated businesses to solve verification issues.

Regulatory Compliance

High-cost fines and legal penalties reduce the productivity of businesses willing to expand their corporate networks. A damaged reputation is the main cause for a company’s failure concerning doing business with corrupt entities.


Executing business verification is a sophisticated, high cost, and lengthy process. The majority of the businesses conceal their real identities to bypass the money trial. Moreover, fake companies hide their real information in different jurisdictions and corporate filings. While in various countries there is no process of paper trial which implies that no documentation is required for establishing a business. Therefore, leaving no room for investigation of shareholder’s information violates the FATF, CTF, and AML regulatory requirements. 

Few corporations are taking control of this situation by executing KYB services. As manual verification is quite inefficient, time taking and vulnerable to errors. To get rid of this con, companies are adopting automated KYB solutions to authenticate businesses in real-time. With the automation of the KYB process, businesses can seamlessly access the ultimate beneficial owner’s information from the registry and perform verification. With the rapidly changing regulatory landscape, it is important to fulfill the KYB regulations.

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