“Know Your Customer” (KYC) is a process that complies with current regulations and is used by companies to identify and verify the identity of their customers. This is a procedure for combating money laundering, terrorist financing, tax crime and phishing.
Most B2B (business-to-business) companies are required to perform due diligence to identify their business partners, with and to combat money laundering and other tax crimes. In addition, it is important to ensure that these business partners work with organizations that provide security and guarantees. It is a mandatory requirement for compliance in most cases, such as the financial sector.
For example, companies that provide professional services to other companies or that work with SMEs and freelancers on an ongoing basis must establish KYB procedures to identify the legal representatives of these companies and verify their affiliation with the client company.
As with the KYC process, digital solutions help reduce costs, cut red tape, and develop control mechanisms for the KYB process.
We can carry out our legally compliant “Know Your Business Partner” inspections, which are also regulated in the 5th FM-GWG, in over 240 countries worldwide. For a check of this kind, it is essential to obtain the correct data of the respective person or the company to be checked. For example, in the case of a natural person, we require the name, date of birth and nationality, and in the case of a legal entity, an excerpt from the commercial register.
Conducting effective due diligence before entering into a business relationship can be the most important business-related activity for your company. Many organizations either do not perform due diligence or do not always gather all relevant information to guide their decision making.