How To Conduct Effective Due Diligence Procedures on Business Customers
Melinda Smith May, 2017
Learn how the scope of KYC (Know Your Customer) based onboarding has evolved to address KYB (Know Your Business) workflows.
KYB is a process of conducting due diligence that helps banks and financial institutions verify a business and identify the ownership structure of a company/ultimate beneficiary of a transaction. Like KYC, KYB is important for an organization to fulfill their AML responsibilities.
Traditionally, the onboarding of business entities and merchants is conducted through manual checks. The process needs to confirm that the merchant account belongs to the claimant and can be reasonably expected not to be used for fraud, money laundering or financing terrorist activities. These manual processes are tedious and time-consuming.
The automation of the KYB process helps organizations reduce manual costs and save time
Artificial intelligence can help financial institutions mitigate the risk of AML non-compliance
New solutions can verify the authenticity of business entities in real-time
Multiple, complex layers of business ownership structure is unravelled