KYB (Know Your Business)

What is KYB?

KYB (Know Your Business) is a process of verifying the identity of an individual or a business in order to ensure that they are who they claim to be and to prevent fraud or money laundering. This process helps organizations to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.

KYB typically involves collecting personal information such as name, address, date of birth, and government-issued identification number. The information is then compared against a variety of databases and other sources to ensure its accuracy. This can include checking against credit bureau databases, government-issued ID databases, and other sources of personal information.

What is the KYB process?

The steps involved in KYB vary depending on the specific organisation or industry, but generally, the process includes the following steps:

1. The first step in KYB is to collect identity information from the company. This is done using company documents and trade licenses to extract critical data relating to company ownership.
2. After the identity verification process is completed, the company’s information is used to conduct a risk assessment. This can include checking for potential red flags such as previous fraudulent activity or involvement in money laundering.
3. After the initial verification process, organizations are required to monitor transactions for suspicious activity. This helps to prevent money laundering and other financial crimes. Organisations must ensure that they are following all regulations and laws related to KYB and data privacy such as AML and KYC regulations.

What information is required during KYB?

The documents required in KYB vary depending on the specific organization or industry, but generally, include

1. Company Name
2. Incorporation Date
3. Company Type
4. Registration Number
5. License Number
6. Current Company Status
7. Legal Address
8. Trademark Details
9. Business Networks
10. Branches (if any)
11. Company Owners/Directors
12. UBOs (Ultimate Business Owners)

How does KYB protect you from fraud?

A few advantages of a digitised KYB procedure are,

1. Fraud Prevention: By verifying the identity of customers, organizations can prevent fraud and identity theft, which can save the organization money and protect its reputation.
2. Compliance: KYB helps organizations comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. This is particularly important for financial institutions and other organizations that handle sensitive information.
3. Trust: By verifying the identity of customers, organizations can create trust between customers and organizations. When customers know that their personal information is being protected, they are more likely to trust an organization and do business with them.
4. Risk Assessment: KYB process helps to identify potential red flags or fraudulent activities, allowing organizations to conduct a risk assessment and take appropriate actions
5. Automation: The KYB process can be automated using identity verification tools, which can speed up the process, reduce costs, and ensure compliance with data protection and privacy regulations.

How does uqudo’s KYB work?

uqudo’s full-fledged KYB process screens companies using the world’s largest company database.

1. Scan and read the company papers via AI document scanning. 
2. Extract corporate data, including company name, date of incorporation, license number and other necessary details.
3. Verify business legitimacy by checking extracted data against 400+ million companies.
4. Identify and screen Ultimate Business Owners (UBOs) to uncover any involvement in fraudulent activities. 

Get in touch with our team to learn more about our KYB process.