Maximizing Global Business Verification
Business verification is a critical part of every fintech onboarding journey, as it helps to protect companies from potential risks and increase trust with customers, partners, and suppliers. The need for KYB (Know Your Business) has never been greater in order to identify and verify companies.
Today, 80% of countries have searchable business registries. You can find a complete list here. Countries like United Kingdom are leading the way in not only providing business information but also UBO ownerships and documents from the registry at affordable prices through Companies House. AiPrise connects with all of these registries and make this data available via a single API or search interface. You get one contract, one API and 100+ registries through AiPrise.
Note that KYB is not just searching for a business in a registry. In this article we dive deeper into the what does KYB really mean and share how AiPrise can help you on every single step.
KYB - Basic
At the most basic level, KYB can include collecting the following information and keeping on the file:
- Business Name
- Formation Date
- Entity Type
- Tax ID Number / VAT NumberTax ID Number / VAT Number
- Registered Country
- Registration Document
- Proof of Address
- Ownership Structure
Different countries have different Tax numbers. For example, in the US, every business has an EIN number given by the Federal government. In India, businesses have 2 numbers associated with them - a GST number and a PAN number.
KYB - Enhanced
At the next level, companies should put resources to cross-verify all the information given by their customers through government or third-party data sources.
- Business Name - cross check with official government registry.
- Formation date - cross check with official government registry.
- Entity type - cross check with official government registry.
- Tax ID Number / VAT Number - cross check with third-party APIs.
- Website - cross check manually or using third-party API.
- Registered Country - cross check with official government registry.
- Registration Document - cross check manually or using AI.
- Proof of Address - cross check manually or using AI.
- Ownership Structure - cross check manually or using third-party APIs.
Compliance officers should also do AML checks - Sanctions, PEP, Adverse media and fitness probity on the customer along with continuous monitoring.
KYB - Going beyond Enhanced
At this level of KYB, compliance officers should address the following things:
- UBO Ownership Tree - It's not enough to just collect names of first level UBOs. Rather, unwind the ownership structure until you get individual UBO who actually has shares under their name. On top of that, every UBO with more than 10% of shares must be verified using a government issued ID.
- Business monitoring - Subscribe to changes in a business like UBO changes, company structure changes, insolvencies, bankruptcies etc.
Be in business with trusted businesses - Globally
AiPrise offers a comprehensive system for global business verification that enables organizations to quickly and accurately get the risk and fraud score of a business in real time.
With AiPrise business verification suite, you get:
- Connection to 100+ business registries globally.
- Ability to pull official business documents from 300+ different sources.
- AI enabled address verification.
- VAT number and tax ID number verification using third-party APIs.
- UBO verification.
- AML check and continuous monitoring.
- Risk score and Fraud score of a business.
With up-to-date information about their legal status, customizable AML ownership rules and comprehensive database checks, risk assessments and data security measures, businesses can ensure they are compliant with applicable laws across multiple jurisdictions while protecting themselves from potential risks associated with online transactions. Not only does this create trust among customers, partners and suppliers but it also saves companies both time and money. AiPrise's cost-effective services make it an invaluable resource for any organization looking to build trust and protect itself against financial crimes.
Book a demo and learn more.