KYB Verification Solutions: Shield of Businesses Against Scammers

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Meta Description: AI-powered KYB solutions collect and ensure data validation in a heartbeat through the access of confidential databases, protecting a firm’s repute.

With increasing statistics of customers moving online and teenagers with technological access, the target market for all sorts of organizations is increasing every day. They are always waiting to tap the fresh and profitable segment. To facilitate a large number of customers, a company collaborates with suppliers and vendors. Often to scale up a business, partnerships and mergers take place.

In this scenario, KYB verification solutions are used to perform a thorough background on the future alliance, along with his/her personal information, professional history, criminal records, and most importantly his/her company’s executives and associations.

The banks and financial institutions have been practicing KYB checks for a long time but the new emerging organizations require KYB verification solutions as they might not be strong enough to deal with the consequences of not complying with KYC/AML legislations.

How do Digital KYB Solutions work?

In the modern era of technologies and AI-powered systems, companies and financial institutions are equipped to verify the identity of beneficial owners of a firm, board of directors, and its partners in real-time with remarkable precision.

To begin with, kyb verification solutions requires a couple of documents and records mandatory of beneficiary/owner to authenticate nature of business and confirm that the person is who he/she claims to be, which includes:

  1. National ID card
  2. Driving license
  3. Corporate and residential address of the beneficiary
  4. Official registration number of the firm
  5. License of doing business in a particular industry
  6. Utility bills as proof of residence: some businesses/platforms asks for bills not older than three months
  7. Bank Statements

For verifying businesses, the owner may have to provide additional documents depending upon the compliance laws and policies of the particular country. It differs from place to place.

The KYB verification solutions authenticate all provided information by matching it against data incorporated in confidential national databases, post confirming the personal data, for AML screening watchlists of FBI and Interpol, PEP’s (Politically Exposed Person) list, and criminal records are considered.

The verification procedure gets done in an eye blink. The KYB verification solutions store end results in the back office of the organization or platform. If provided data is valid, then there is no harm in conducting business with the organization but the firm or financial institutions has to monitor the customer throughout to maintain stability in the market and compliance with regulatory bodies.

Difference between KYB and KYC

Both of these terms often get mixed up. They are used by banks and business entities for the same purpose but the method is slightly different. It’s clear from the name that the KYC (Know Your Customer) process validates the identity of a single soul; a general customer whereas (Know Your Business) KYB verification solution has to validate an entire organization; assessing the UBO’s, corporate structure, and record of earlier trade relations.

The KYB process is a bit more layered and takes more time before getting along with the firm because in conducting business, a greater amount of finance and a large degree of risk is involved as compared with a single individual.

The initial verification of personal information is completely the same where the owner has to provide his/her personal and professional documents in front of the device’s camera, where the information is matched against national databases.

Manual KYB Check

If the provided information is authentic and the customer seems genuine, before making any strategic decision, despite the AI-powered solutions, a personal investigation may have to be done. Banks do it all the time. There are a number of ways to confirm the legality of the business firm and its position in the market with help of external factors.

The latest information about the company or its beneficiary from the news can be taken into account. Any suspicions of involvement in an illegitimate activity or trial can save the reputation of the verifying businesses and the investigating agents can make a visit at the corporate address for risk assessing.

(Know Your Business) Service Is Essential for Fraud Prevention

In business, the first impression is never the last impression. The cases regarding ID fraud and money laundering that occurred in the past have supported this statement. Danske Bank lost $228 billion to fraudsters in a few years. Similarly, Standard Charted lost $265 billion for failing in the prevention of money laundering.

The KYB verification solutions have created ease for plenty of firms like insurance companies, brokerage firms, banks, business corporations, e-commerce, and many. The prime purpose of the system is to protect and enhance a company’s image in the market and save them from enormous penalties due to not complying with legislation.


The target market of customers is increasing massively and businesses are striving hard to grab the majority share, for verifying businesses prior to establishing any association, KYB verification solutions equip the firm to cope up in the race by ensuring risk-free collaborations/partnerships by validating the corporate structure and UBO’s of the firm swiftly with no errors by comparing it with national databases. The appropriate KYB verification solutions are mandatory for firms to protect their repute and preserve the potential client pool.

Know Your Business

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