Thursday, March 23, 2023

Business Verification Solution: Fighting Fraud in the Corporate Sector

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Corporations have benefited from technological innovation but fraudsters have also used cutting-edge technology to create shell companies and deceive businesses. This has perplexed business experts and urged professionals to implement the latest security measures. KYB solution can help corporations discourage fraud enterprises and ensure compliance with KYC & AML regulatory obligations. This way, companies can easily strengthen relationships with business partners and win trust for long-term progress. Undoubtedly, this gives a boost to annual business revenue. 

The following sections of the article will discuss the importance of KYB verification and how modern-day companies can deter bad actors actively. 

Automated KYB Checks: A Quick Insight

KYB is the due diligence review of a company to identify and detect money laundering & terrorism financing cases. This is about developing policies to highlight suspicious activities and fraudulent monetary transactions. Using the cutting-edge approach also helps corporations deal with only genuine enterprises, not shell companies that exist only on documents. 

A KYB solution empowers businesses to determine whether experts deal with genuine enterprises. This way, real companies can deter shell companies from exploiting the mainstream corporate systems. Moreover, legislators demand AML checks for businesses and the implementation of record authentication solutions to deal with foreign parties. Electronic identity verification and the 6th AMLD from the European Union (EU) are important in dictating KYB laws to corporate parties. 

On the other hand, in the USA, Customer Due Diligence (CDD) is important to determine the ownership of a corporate party. Various KYC service providers offer KYB services to gather accurate data. Modern-day corporations can also collaborate with a third-party vendor to implement a GDPR-compliant KYB solution. This way, present-day industries can easily discourage money laundering and terrorism financing cases. 

Just like Know Your Customer (KYC) solutions, KYB services validate business identities by commercial data with the help of APIs. With a business’s registration number and jurisdiction code, a robust KYB solution can gather authentic information to produce high-quality results. 

Protecting Business Interest with KYB Verification & AML Checks

AI-driven business verification solution, corporations can easily determine the genuine identity of a business partner and calculate financial risk. With AML services, companies can easily identify bad actors in global watchlists or financial risk databases. Applying Customer Due Diligence (CDD) is critical in evaluating the risk associated with each identity. 

AML background checks can cross-match given data against thousands of global watchlists and databases. This way, the KYB solution plays an important role in determining the authenticity of all corporate entities. It allows corporations to handle huge sums of money from a large customer base & corporate partners. Banks, brokerage firms, and investment companies must be vigilant against all business entities that want to collaborate for mutual goals. Hence, implementing KYB verification plays an important role in protecting the business interests of concerned corporate associates. 

Fighting Business Fraud with Automated KYB Checks

Implementing the know your business solution can be cumbersome and resource-draining. However, with automated KYB checks, corporations can easily deal with the issue. Automation is a powerful step towards fighting B2B scams and ensuring compliance with KYC & AML regulations. This way, corporations can easily avoid hefty fines and communicate responsibility & care to potential customers. 

Evaluating the Significance of Automated KYB Checks

Several banking service providers have experienced the negative consequences of outdated KYC verification procedures during onboarding, financial transaction authentication, and online banking services. For this reason, numerous Financial Institutions (FI) that want to implement KYB services and determine an organization’s Ultimate Beneficial Ownership (UBOs) do not want to collaborate with KYC vendors. 

Teaming up with a third-party vendor that can offer AI-driven IDV services can streamline the business validation procedure. With OCR technology, identity validation solutions from a verified service provider can facilitate businesses to offer a positive customer experience. 

The state-of-the-art solution can cater to the needs of consumers worldwide and process documents in multiple languages. The world-class technology uses government-issued records (passports or driving licenses) to determine the genuine identity of a business partner. 

Concluding Remarks

With Machine Learning and Artificial Intelligence (ML & AI), no fraud attempts can be successful because the software can detect fake ownership structures. Fraudulent data on top management and creating shell companies with complex power hierarchies. Moreover, nationality validation and geolocation services can empower genuine companies to identify true country of origin. To collect valid corporate data and execute KYB, modern-day companies must collaborate with a verified third-party vendor. 

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