Know Your Business – Protect Businesses Against B2B Frauds

July 6, 2021

To establish secure business relationships, Know Your Business (KYB) is the foremost solution to safeguard business concerns and fulfill the requirements of AML regulations. Before establishing any business relationship, it is important to verify whether the client is authentic and trustworthy. Know Your Business standards based on the regulations of AML provide reliable means to verify the business partner. KYB helps businesses to verify the corporate information of their prospective clients and the personal information of the higher management of the client’s company. Customer Due Diligence (CDD) and KYC for business verification is important to identify the ultimate beneficial owner (UBO) structure of the partnering business.



What is Know Your Business or KYB?

Know Your Business (KYB) is used to perform due diligence analysis of enterprises and businesses against money laundering activities. It helps in monitoring illegal transactions or activities as well as developing policies against them. Corporate businesses verify whether the enterprise they are dealing with is authentic or a fraudulent company through KYB authentication.




Why is KYB Useful For Business?

Regulatory authorities of the developed countries require anti-money laundering as well as document verification checks to deal with foreign organizations. Electronic identity verification and the 6MLD regulations of the European Union are some of the examples of KYB laws for corporate organizations. While in the US, customer due diligence checks are carried out to determine the true owner of the enterprise. Banking organizations have to face a lot of trouble for remote customer and transaction verification.


That’s why many financial organizations require business verification solutions to determine the ultimate beneficial owner (UBO) structure of the business they are dealing with. Artificial intelligence-based identity verification solution helps enterprises to perform business verification in real-time. Machine learning algorithms detect any type of forgery in the identity documents while determining the ownership structure of the ID document. It verifies the identity of the end-user by authenticating his identity documents such as passport, ID card, or driving license.


KYB For Protection Of Business

KYB solutions help businesses to verify the real identity of the end-user while analyzing the financial risk associated with each entity through AML compliance services. AML services are useful for businesses to determine whether an employee of the partnering business is involved in any financial risk database or watchlist. KYB services perform customer due diligence checks as well as AML screening to verify the authenticity of any business. It helps financial institutions to look after funds of huge customer base and business corporations. Financial institutions such as banks and insurance firms need to verify the authenticity of any corporate organization before dealing with them.


KYB For Mitigation of B2B Scams

Performing manual KYB requires more time and specialized manpower. Online businesses are exposed to rapidly increasing threats of online frauds and b2b scams. Automated business verification services is a cost-effective and robust solution for defense against suspicious fraud attempts. KYB solution helps corporations to enhance their lengthy business verification operations while establishing trust among both parties. Organizations need to be careful of KYB regulations while maintaining B2B relations with other businesses.




KYB For Improved B2B Conversion Rate

Conversion rates are the major B2B marketing standards for any business firm. For corporate organizations, a relation based on trust holds major importance for reliable communication. By implementing identity verification measures businesses are all set to collaborate, as it builds trustworthy relations between partnering enterprises. It not only provides a better solution to increase the sales of the business but also maintains a good market reputation. Establishing reliable business partnerships and trust is directly proportional to better sales in the long run.







Business verification is a tedious, high-cost, and time-consuming process. Many corporations conceal their real identity to get rid of money trials. Fake companies modify their real information by different authorities and fillings. Such companies hide their identity through paper trials which makes it quite hard to identify. While in various countries there are no appropriate paper trials that imply that no documentation is needed for setting a business, thus no source of investigation of shareholders’ information. Which is illegal according to the requirements of FATF and AML regulations. Various businesses are implementing KYB solutions to overcome such problems. Manual verification is inadequate, expensive, and time-consuming. To get ahead of this process, corporations are incorporating automated KYB services to authenticate businesses in real-time.

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Andi Perullo de Ledesma

I am Andi Perullo de Ledesma, a Chinese Medicine Doctor and Travel Photojournalist in Charlotte, NC. I am also wife to Lucas and mother to Joaquín. Follow us as we explore life and the world one beautiful adventure at a time.

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