KYB Solutions - Providing A Helping Hand In Effective B2B Relationship

Businesses that offer their services to other businesses need to verify their commercial partners. Gone are the days when it was enough to verify the customers. Now genuine entities whatever they interact with, identify them. B2B relationships offer great benefits to enterprises but they can also cost them heavy fines if they unconsciously connect with any shell company. KYB solutions are helpful in verifying the partner corporate partner of the business to mitigate risks of fraud threats and money laundering.

The regulatory landscape is constantly changing around the world. It has put pressure on businesses to verify the companies they interact with. Policies regarding the B2B relationship are designed to prevent fraud threats.

KYB Solutions

As compliance like KYB solutions is practiced by a number of businesses to verify the corporate data of their potential clients and the information of higher management. Merchants are required to employ customer due diligence (CDD) and KYC in order to maintain the Ultimate Beneficial Owner (UBO) structure.

Authenticaticating organizations and ownership structures now require enhanced due diligence. EDD ensures that the potential partner is not a threat to the benefits of the company, intended nature of the business relationship, sources of funds, and enhanced monitoring of the business relationship on a regular basis.

A Typical KYB Solutions Structure

Know your business is the process of verifying the entity any company is going to deal with. A typical know your business check make sure organizations do not interact with any shell company that could cost them facing hefty fines. The 4th AML directive from European Union is one of the examples that dictate businesses to adhere to KYB solutions.

However, in the US there exists Customer Due Diligence (CDD) which means top verifying the true ownership of a business. Know your customer (KYC) is used to verify the identity of the customers. Similar to KYC, KYB is employed to verify the realness of the customers.

How does KYB Solutions Protect Business Entities?

With the help of artificial intelligence, Kyb solutions cannot only verify the identity of the business but can also help them to check the financial fraud associated with them through AML compliance. Several identity verification services are being employed by businesses to verify the true identity of the businesses.

KYB solutions protect business entities by running a number of checks on companies. Business statements, filings, their networks, and the basic regular information is being verified to make sure businesses are not involved connected to any shell company.

Automated Know Your Business Checks

Verifying the identity of a company can become a hectic task for entities sometimes. Manual checks add up to the complication of the process. They also have a margin for errors in the process. All this confusion have been replaced when the companies opted for automated ways of verification.

Digital KYB solutions add to the productivity of the process by saving time for both the entities involved. Verification of a company can be done in a matter of seconds. Because of its authentic result-driven services, digital KYB solutions have become the preferred choice for businesses to verify their potential partners.

Along with time-saving and authentic result-driven services, automated know your business also improves workflow and proves to process a secure and effective onboarding process.

Cost Of Not Complying To KYB Solutions

Due to its constantly changing nature, businesses find it difficult to comply with know your business. Also, some company thinks that it is a waste of money to spend on verifying other apparently legit-looking entity. They have the money to expand their business but do not have enough brains to spend for their safety.

• Companies that fail to comply with KYB laws not only put themselves at stake but damages the country’s economy as well. Once associated with bad names, no other country desires to invest in that particular company.
• Businesses also become a source of money laundering and terrorist financing if they join hands with shell companies. The biggest crime badly affecting humanity nowadays is money laundering and terrorist financing. Once associated with these crimes, companies also lose their reputation in the market.
• Another factor badly affecting companies by not complying with KYB solutions is the loss of customers’ numbers.

Summing-up

Because of their increasing work needs, businesses now are required to partner up with other entities. But you may not know if the other corporate entity is real or not. To verify the true identity of the businesses, KYB solutions are helpful. It not not is useful in the verification of a company but also assists in combating crimes like money laundering.