It is important to follow the law to prevent crime and loss of money or reputation. Banks and other financial institutions that fail to perform their AML duties are fined millions of dollars. Fenergo reported that last year, the financial sector lost $5.4 billion due to non-compliance with AML and (Know Your Customer Verification) KYC norms.
Even though technical solutions are now in place to help compliance officers reduce the workload and the potential for human error, the large numbers reveal that many companies still struggle to maintain effective Know Your Business Verification (KYB) procedures. .
As we have now covered the fundamentals, let’s jump into the pros and cons of KYB and learn more about automated business verification solutions.
Major Benefits of Know Your Business Verification Process
Unlike KYC, Know Your Business Verification focuses on organizations rather than clients. The process ensures secure business relationships by preventing fraud and helping organizations stick to compliance rules. Some of the key aspects that explain the benefits behind KYB are:
- Ensures a secure business-to-business (B2B) relationship;
- Automated solutions remind compliance officers to stick to AML-related tasks that are automatically required. In this way, KYB helps to reduce human error;
- This guarantees compliance with the ever-changing regulations;
- Minimizes operating costs;
- Helps prevent fraud.
- Reduce or eliminate physical risk, competition risk, human risk, security risk, operational risk, reputational risk and fraud Risks.
How does KYB is helping businesses?
It is important to understand that fraud can happen with any company. Know your business Verification process eliminates risks by detecting various red flags during the company’s screening process, thereby preventing any other entities from engaging in shady criminal activity. Some of the most common signs of suspicious behaviour are if:
- The company doesn’t have proper credit records.
- The ownership structure is constantly changing
- Documents are not structured properly, they contain mistakes.
- The office address differs from the company’s shipping address.
KYB is necessary for Safer Business Relationships
This process protects the mutual interests of both parties when it is a matter of business relationships. By verifying company data, including the Politically Exposed Person (PEP) list or Ultimate Beneficial Owner (UBO), the process ensures that the other company is not involved in any fraud or criminal activity.
In addition to trust and confidence, it is necessary to review any company prior to signing a partnership agreement for security reasons. For example, potential business partners may not have control over their vendors.
How Can Certificate Verifiers Help?
With our business verification services, we can provide you with the required confidence to quickly and accurately validate business details, customers and vendors by giving access to critical validation data of a business in an understandable format.
We at Certificate Verifier provide business verification services in three different packages. That is Basic, Standard and Pro. You can readily choose any one of them as per your requirements and your desired details. So don’t just wait and see, protect your business with Certificate Verifier and its professional verification services.