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Enhancing Business Expansion through Digital KYB checks


Every company desires growth, but conquering new territory is seemingly tasking. Most often, expansion is not possible with only individual efforts; companies must rely on the combined efforts of other businesses through partnerships to make this happen smoothly. But what if a company becomes a victim of a fake business or fraud due to a lack of proper due diligence checks? The results are pretty evident- loss of funds, bankruptcy, or, eventually, company liquidation.

Business associations today rely on mutual understanding and interests. While your partner enterprise may be dependable, they may be unaware of the effects of digital technology’s ever-changing world and may violate global or local regulatory compliance laws/regulations. Furthermore, your business partners may have little or no control over their partner company’s vendors. This is a significant challenge, necessitating a constant need to verify trust between entities to build secure, trustworthy, and stable relationships.

What Is Know Your Business?

As a business owner, you will have one or more reasons to engage in a business transaction with another business; beyond the initial interaction, it is critical to know that they are legitimate. This is where Business verification becomes extremely important. Business verification, also known as Know Your Business (KYB) checks, protects your company from fraud, ensures regulatory compliance, and mitigates potential risks. Finally, Know Your Business (KYB) standards are dependable for establishing trust and secure communication channels.

Know Your Business (KYB) is a set of business verification practices to reduce the risk of money laundering and other fraudulent activities. It is an extension of Know Your Customer (KYC) guidelines that includes data verification and verification of the company’s legitimacy. Typically, this is accomplished by screening businesses against blacklists to determine whether they have been involved in any criminal activities.

How Know Your Business Checks Work?

Business verification processes are similar to KYC checks but with the added complexities of business registration, ownership information, and potentially complex business structures. As a result, verifying a business can be a time-consuming, costly, and complicated process that can take up to 3–4 months if done manually. In most cases, lengthy delays result in application abandonment and the loss of partnership deals. It was estimated that the global commercial and business banking market lost $3.3 trillion in 2019.

Anti-Money Laundering compliance is achieved through Know Your Business (KYB) verification. Companies must safeguard their interests before doing business with another company. Companies must know if their money is being misappropriated by corrupt business owners, shareholders, and money launderers. The Know Your Business applications determine whether corporate businesses are dealing with a legal or a shell company for this purpose. KYB verifies the corporate information and personal information of the high management that manages the operations of that customer company. It is important to note that KYB is inextricably linked with the laws of a specific country; jurisdiction is a critical factor. As a result, gathering a wide range of data on the involved business is required. Identitypass provides the following data for efficient KYB checks:

  1. Basic registration information: company name, registration code, registration date, legal status, legal address, share capital, internet address, e-mail, phone, country.
  2. Director’s details: information about the relationships of the directors of companies.
  3. Paid Share Capital: Access accurate information about shareholders.
  4. Shares value: Ascertain the amount it costs to purchase shares in the company
  5. Shares Capital: It may contain the amount of authorized capital, capital status (paid/unpaid), and start date.
  6. Liquidation Status: Access information to confirm whether a company is on the verge of liquidation.

Benefits Of Digital KYB for Your Business Expansion

Automated KYB Checks

It takes time to verify a business owner’s identity, examine the ownership structure and documents, and determine the authenticity of its beneficial owners using traditional methods. As a result, businesses that want to comply with AML regulations and protect their businesses must use digital KYB systems such as Identitypass to automate the verification process in minutes. This automated process gives companies instant access to KYB compliance via digital authentication.

Optimum Fraud Protection

KYB provides a new sense of authenticity to business verification methods and simplifies lengthy business verification operations, ultimately increasing sales and nurturing business interests in both parties. Aside from these advantages, trust, dependability, and security measures are also promoted. Regulatory technology has significantly altered how business verification is performed over the years. Digital KYB is assisting in the development of secure business relationships around the world by using corporate information and other identity parameters to verify a partnering company before partnerships.

Swift Compliance with AML Regulations.

Different compliance regulations apply to different countries or regions. It isn’t easy to stay compliant with these regulations because they are constantly being modified or changed, and you may be unable to keep up. Given the recent events, it’s likely that digital tools and legal verification procedures will continue to coincide. Identitypass provides intelligent KYB endpoints to help you stay compliant with current regulations and reduce the risk of fraud. Our KYB solutions are powered by intelligent tools that will help you save time and improve your expansion plans.

Identitypass has expanded its Business verification Checks to over 90 countries worldwide as part of a major product update to KYB verification. Our Business verification data points include CAC verification, RC number, Stamp duty verification, CAC document, and Company reservation Numbers. Together, these services simplify business onboarding and provide continuous monitoring for fraud, money laundering, and illegal behavior throughout a business partnership.

Want to get started on any of these KYB products? Sign up here for free, visit our documentation page or reach out to our team at for implementation.

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