When it comes to business dealings, know your business is the major source to secure the business from fraudulent dealings and remain compliant with the anti-money laundering regulations. The business must ensure the business they are detailing is authentic and trustworthy before indulging in any business dealings. Not all businesses are safe to deal with and can cause you and your business a lot of trouble in terms of law and in terms of loss. This is why KYC customer service is required to ensure safe business dealings. In this blog, we will discuss in detail what know your business is and what are its benefits.
What is KYB?
According to a study by Ponemon Institute, up to $4 million is lost in business dealings because of weak compliance practices. This situation becomes more interesting as the total sum of $5.47 million is spent on compliance across the globe. KYB is another form of KYC, just like it helps to identify the customers and their legitimacy, the KYB process works for verifying the authenticity of the businesses. For KYB, certified identification parameters are used which consists of the verification of documents of the business and business owners and the company registration number (CRN).
Not all businesses are legit and some are involved in criminal activity like money laundering. If found partnering with such a business can cause you a lot of harm. Not only the authorities will shut down your business but they will also enforce a huge amount of fine. There are also some businesses that offer investment opportunities. These companies in realities are fake and are a pyramid scheme and if you end up investing in such a business, you will lose your money. FCA (Financial Conduct Authority) the regulatory body of the UK has warned its citizens against such frauds and has issued verified and unverified businesses.
There are KYB customer service providers that can verify a business for you. These solutions are based on artificial intelligence and will verify the business and the business owner within seconds. It operates digitally and the business documents are matched against the sanctions list to make sure that it has not been involved in illegal activity. The business owners are verified by verifying the document type.
Let’s look into the benefits of KYB customer service.
Secure Business dealings
Today business depends on mutual understanding. The trend of affiliate programs have been increasing and it is necessary to ensure that your affiliate business is reliable. Businesses have no control over their pattern company and in order to build a secure and stable relationship, there is a constant need to verify trust between both companies. KYB customer service can help to ensure trust between the businesses. Digital KYB customer service not only ensures trust and reliability but also eases the lengthy process which eventually strengthens the business relationship resulting in an increase in sales.
Compliance with the Regulatory Requirements
The increase in illicit financial activities has pushed the hand of law enforcement agencies to implement strong regulatory measures for AML. The Bank Secrecy Act came into existence in the 1970s after the Vietnam war. The idea behind the law was to reduce money laundering activity. According to the law, businesses, especially banks, are required to identity verification of all their clients and monitor their transactions to eliminate money laundering. Verifying the business entity also falls under the same regulation as unverified business dealings can also lead to unintentional money laundering. Regulatory authorities like FATF and FinCEN overlook these regulatory measures and penalize non-compliant businesses. The regulatory authority also requires the businesses to identify their beneficial owners. The digital solution for KYB can verify the businesses in no time and help the enterprises to remain compliant.
Reduced Operational Cost
In order to keep up with today’s fast-paced world, businesses require a digital solution for their operations. KYB customer service provides digital service for businesses to deal with their security and compliances measures in regards to dealing with other businesses. The manual process has proven to be not that accurate and it takes a lot of resources to carry out the process. This is why businesses must opt for a digital solution for verification of the company they deal with.