As technology grows rapidly, online scams are increasing daily. Money laundering proliferates without any bottleneck, especially in financial institutions. To stop financial crimes, regulatory bodies introduce various obligations, and complying with these ensures the company is onboarding real identity. These obligations prevent money laundering and terrorist financing. But compliance with these demands time and cost. Nevertheless, know your business can reduce companies’ burden or assist them in verifying business.
Learn how to attest business identities through online Know Your Business checks and combat financial crimes.
What is E-KYB?
Electronic Know Your Business (KYB) checks are referred to as E-KYB. Simply verify the business identity and owners through digital checks. This ensures that the company gets accurate results with real-time data. In E-KYB, the company has to gather the required documents and, after sorting them, send them to the software, which will attest the document, screen the owners, comply with regulations, and validate the data. The software uses machine learning and AI technology, reducing the chances of human error.
Why Know-Your-Business is Significant?
Business verification was implemented in the market in 2016, and in the initial step, companies comply with these obligations through a manual process. The manual verification takes time and is costly for companies. In manual business verification, human representatives submit the documents and verify these by cross-checking them against the government database. It does not provide accurate results and causes non-compliance penalties.
Technology companies have launched online business verification to overcome these issues. Through this, companies can remotely attest to identity verification papers. Furthermore, it complies with national and international regulations. It also protects companies from money laundering and terrorist financing by monitoring the corporate structure. The online know your business offers entities real-time data for instant verification, reducing business due diligence.
How to conduct E-KYB?
Companies must choose a business verification tool that fits their needs and industry for online business verification. Many KYB compliance software programs provide various industry and obligation compliance. But before using any business verification tool, ensure they offer the following requirements:
Business Collection
It must have a customizable business collection method that allows companies to gather only the required information from the business. The client-focused business collection assists the industry in submitting identity verification documents as they demand. There is no burden of gathering a bundle of papers; it is just what needs to be complied with. It also ensures the business registration doesn’t have to come to the office for document submission; they can upload documents from anywhere, anytime.
Document Verification
Before using any know your business verification software, ensure it has a document attestation process. This process ensures the appearance submitted by the business for identity verification is original and not counterfeit. For that, they utilize machine learning to check security features such as fonts, borders, signatures, etc., depending on the nature of the documents. This software also ensures the company data is valid by cross-checking the original government documents. It guarantees the papers are not counterfeit and bogus.
Watchlist Screening
There are various government and third-party watchdogs databases where they added all the persons list who are involved in illicit activities. This assists them in identifying the financial or other bad actors in the initial step. However, manually, it takes almost a week or months to dig through all the databases and then cross-check all documents one by one. However, E-KYB relies on advanced technology and uses algorithms to cross-reference company data from sanctions lists. It instant meets the business data from more than 250+ databases and separates them, which aligns with the block databases tanzohub.
Perpetual KYB
To comply with the AML regulations, companies must monitor the ongoing changes in their corporate structure. E-KYB verification offers this opportunity through real-time instant alerts informing entities about changes in ownership structure. It detects transparency and indicates any updates made by the UBOs. It also provides a visualized central report, which the company can use for business verification in the future.
The bottom line
Ultimately, business verification is essential for companies to prevent money laundering and terrorist financing. However, complying with the Know Your Business measurements manual is challenging. It is time-consuming and costly, which damages the company’s reputation and makes it vulnerable to scammers. E-KYB is an advanced technology that verifies the business and complies with worldwide regulations. It provides accurate results by screening the business information with real-time data.
Leave a comment