Terrorist financing and anti-money laundering cases are always flashing in the news. Due to this, businesses all around the world are bound to comply with regulations and enhance B2B relationships. Financial institutes are spending a notable time, budget, and effort in complying with these stringent regulations.
Nevertheless, verifying your business can be time-consuming, finance-wasting and you may not be able to comply with all the changing regulations that may reduce workplace efficiency.
But worry not, an easy path to these difficulties is online business verification services. It is prompt, robust, and cost-effective!
What is “verify your business”?
For starters, while there is nothing new in know your customer, KYB customer service is comparatively a changing phenomenon to which businesses are still getting used. Verifying your customer and verifying your business go hand in hand and both are equally important to comply with universal frameworks.
Know your business verification is a step to verify a business in order to protect the economy and the industry. Unpleasant popular examples of financial frauds are terrorist financing, drug trafficking, human trafficking, and various other methods where criminals invest in. A published report by OWI labs in 2017 declared that KYB verification was a $5.6 billion market which might grow to $11.8 billion at the end of 2022.
These stringent regulations have given rise to a complex customer onboarding process nevertheless adopting these processes gives numerous benefits to financial institutions to defend and protect themselves from fraud. Additionally, financial sectors have to be in the A-star category because financial crimes are evolving day by day.
Why Is Know Your Business The Best Shield From Financial Crimes?
Financial crimes evolve along with technological advances. The best shield in protecting a business from financial crimes is to adopt multiple methods that comply with know your business regulations. FinTech is helping all financial institutions in the fight against identity theft, financial frauds, hackers, imposters, and scammers. There are day-to-day changes in the regulatory system for business verifications which are proposed by the FinTech industry featuring artificial intelligence. Additionally, KYB checks are also performed and analyzed through blockchain to ensure a robust and clear collection of data.
Business verification through artificial intelligence
AI-based business verification technology can reduce the cost of compliance for multiple financial sectors while maintaining a worthy standard in providing the best know your business customer service. Artificial intelligence simply maps human intelligence through machines that are programmed to act and think like humans.
Additionally, it also provides a global verification facility whereas manual verification would take ages to perform simple customer due diligence. For example, it is mentioned in the 4th AML directive to perform stringent audit trails in order to prevent frauds. Similarly, the 6th AML directive states that countries are required to monitor a central legislative registry for all the business entities listed.
Blockchain technology assisting KYB
More efficient innovations have emerged in the market to verify your business other than AI-based technology. One particular technology is Blockchain. When financial sectors adopt blockchain for know your business verification, it helps in verifying their users quickly and easily. Through it, financial institutions can secure and exchange information of the client without having to maintain a central register.
The steps of a blockchain in acquiring data are error-free for instance, a business user logs in to the business verification service through an OTP (One time password). The data is then accessed by a third party (such as a bank) but all ownership rights remain with the owner making it a privacy-friendly verification system.
Recent facial recognition technology is slightly exposed to data breaches making it difficult to achieve proper compliance with complex GDPR. There are very few accurate KYB solution providers in the market which are compliant enough with GDPR and other regulatory authorities. With rising technological advancements, new and efficient methods are required to create financial security and management of risks. Verifying the business prior to any breaches or thefts is an effective solution because prevent is better than incurring billions of losses.