The contemporary digital era is all about revolutionary technologies and solutions catering to problems arising in various industries. However, simultaneously, they have led to a rise in cybercrimes and financial offenses such as money laundering and terrorism financing. Therefore, the identity verification of users, customers, businesses, investors, etc., in every sector has become the need of the hour. The know-your-business process is crucial for every financial and non-financial institution to verify the vendors, supply groups, and business partners. KYB is critical to ensure that business-to-business alliances are based on trust, security, and transparency. Following are the 7 game-changing tips through which can revolutionize businesses workflow using KYB solutions.
1. Compliance with Regulations
Since the dawn of the twenty-first century, global dynamics and world order have significantly transitioned. Money laundering became the talk of the town as financial criminals found various ways to hide their illicit wealth and transfer it. They also began exploiting the unregulated nature of digitization to deceive law enforcement agencies. Consequently, the international community shifted its focus to combating this emerging global threat. Similarly, the incident of 9/11 highlighted another growing menace against global security. Therefore, countries joined hands to fight terrorism financing. They accelerated the identity verification efforts to detect suspicious individuals and organizations.
States proposed regulatory standards to eliminate the opportunities for financial criminals to get away with grave offenses. Such financial laws prove to be efficient in mitigating money laundering and preventing other such crimes. The know your business process is one of the tools implemented to adhere to domestic and international financial or non-financial regulations. It is a means to achieve compliance and stay within the boundaries of the law. KYB allows businesses to track down criminal entities during the initial onboarding phase. Therefore, KYB is, critically, a game-changer in achieving AML/CFT compliance.
2. Protection From Non-Compliance Consequences
As mentioned, every firm, whether from the finance sector or not, must abide by the established laws and financial regulations. It should ensure that every business partner getting onboarded is not involved in financial crimes, such as money laundering or funding of criminal networks. Likewise, it must perform due diligence checks, transaction screening, and enhanced due diligence measures such as verifying the organizations’ ultimate beneficial owners (UBOs) against global watchlists. On failing to do so, a business firm faces legal consequences. Compliance failures lead to hefty economic penalties and even imprisonment, as per the domestic laws of a country. According to reported data, US financial services organizations pay USD 25.3 billion annually as compliance costs.
3. Data Protection & Privacy
Cyber attacks, including privacy breaches, have become a threat to global security, and databases risk getting accessed through malware. Hackers have gained expertise in quickly accessing peoples’ data via software. They misuse it for their illicit ambitions. There have been renowned global accounts of security breaches and intelligence leaks in governmental setups and the military. Rival states use such methods to gain sensitive data and exploit it for their own advantage. Other than that, false, illegitimate, and legally unauthorized companies can scam businesses and harm their integrity by abusing clients’ personal information. Therefore, KYB solutions allow organizations to protect customers’ data records with automated tools and software. They enable financial and non-financial firms to verify every company getting onboarded to identify suspicious entities.
4. Automated API System
KYB is significant for organizations to enhance their versatility because it offers an all-in-one application programming interface. The API serves as a one-stop solution because every tool essential for conducting client verification and due diligence is integrated into one interface. KYB services streamline business operations and boost your firm’s overall performance by saving time, financial capital, and effort. Artificial intelligence-powered KYB solutions allow you to access global databases with entities suspected of money laundering, such as FATF’s watchlists. Likewise, machine learning has introduced data extraction tools to verify the authenticity of provided clients’ documents. For instance, a fake document checker detects every false piece of information in an identity document. In all, KYB possesses the capability to revolutionize an organization’s workflow in incredible ways.
5. Cost & Time-Effectiveness
The know-your-business procedure eases the workflow with its automated and artificial intelligence-based software solutions. The state-of-the-art business verification services allow firms to save time and effort. Most significantly, KYB is cost-effective, as it eliminates the expenditures of manual processes. The latter have proved inefficient, more costly, and require separate management. The human-dependant identity verification procedures are prone to human error and, thus, are unreliable. Therefore, KYB provides an all-around approach to business operations by eliminating any such possibility and making client onboarding much more convenient.
6. Tailored Features
Machine learning and artificial intelligence have enabled software-as-a-service providers to devise high-tech tools and expertise. They utilize technological prospects in unimaginable ways to cater to industry-specific problems. KYB is one such solution that the providers grant organizations according to their demands. Automated KYB deals with the particular needs and target audiences of a sector. Companies can acquire tailored features that are specific to their demands and fulfill particular criteria. This is also one of the pros of KYB solutions that streamline your organizational operations and allow it to comply with anti-money laundering and other financial regulations.
7. Enhanced User Experience
Another revolutionizing feature of KYB solutions is that it allows convenience to businesses that intend to engage with an organization. Automated KYB service providers offer website services and tools. This means that every essential information that a business partner, vendor, or supplier should know can be available on the website. Therefore, KYB solutions provide an enhanced user experience to anyone reaching out to the company. Hence, KYB is immensely significant to ease the users when they attempt to contact the organization.
In a Nutshell
To conclude, top-notch KYB solutions have the capacity to revolutionize the workflows of organizations in astounding ways. Most significantly, by adopting automated know-your-business services, organizations can successfully achieve compliance with anti-money laundering and counter-terrorism efforts.
About The Author
Dan Taylor
Dan is responsible for content marketing and branding at GuestPostBlogging. He writes about topics related to startup naming, branding and entrepreneurship.
