Do you really know who you’re doing business with? To provide organisations with an innovative, effective, and low-cost way to perform due diligence on business entities around the world, Trulioo now offers real-time Business Verification in over 80 countries worldwide.
With Trulioo’s Global Business Verification, clients can instantly determine the authenticity of business entities to help detect fraudulent behavior and criminal activity, such as tax evasion and money laundering. Offered through the GlobalGateway platform, Business Verification automates compliance workflows, reduces manual front-to-back office operations, takes advantage of digital processes, decreases the risk of fraud, and allows staff to focus on key compliance considerations.
Trulioo clients now have the ability to automatically validate company vitals – including business registration number, company name, address, status, key management personnel, and date of incorporation – by querying hundreds of government registers and public records in real-time.
Our Global Business Verification solution analyzes, verifies and provides data intelligence for over 250 million business entities around the world. It enables real-time verification of company records through official registers, performs an AML check of the business, uncovers the ultimate beneficial ownership (UBO) structure, and runs KYC checks on UBOs – all through a single API integration.
The Need for Business Verification
In many jurisdictions, there are strict requirements for proper Customer Due Diligence (CDD) and adherence to Know Your Customer (KYC) rules for businesses opening accounts. For example, in the EU, the new AMLD4 rules took effect in June and in the US, the FinCEN Final Rule is coming into full effect in May 2018. While the exact rules depend on the specific jurisdiction and industry your business operates in, there are two general considerations:
1) Verify Business Details
- Obtain and verify company vitals of the applicant
- Registration Number (Business Registration Number)
- Business Name (The Name of the company)
- Business Status (Operation status of the company)
- Address (Contains the address where the company is operating)
- Managing Directors (This may include key management personnel of the company)
- Date of Incorporation (The Day, Month, Year of the incorporation of the company)
2) Verify Ultimate Beneficial Ownership (the UBO)
Once you have the company vitals, you need to perform a risk assessment to determine if Enhanced Due Diligence (EDD) is necessary. Depending on the applicants industry, the countries they operate in, the value of transactions, the volume of transactions, and other risk factors, an EDD check might be in order.
If so, then steps must be taken to ensure you know who the UBO(s) are for that business. According to the FATF, “beneficial owner refers to the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement.”
Problems of Traditional Business Verification
While the regulations for Business Verification are becoming more rigorous, these procedures are not entirely new. Financial institutions (FIs) always needed to look at business documents. They’d want an applicant to come in with all their business records. They’d pore over the documents manually, make copies, make notes, pass them on to other departments, get responses, ask the applicant back in for clarification, and around the merry-go-round it went.
This manual-intensive process is slow, expensive, and frustrating, both for the FIs and for the business applicants. To give some specific numbers, [tweet_dis excerpt="Forrester Consulting — AML, KYC onboarding costs up to USD $25,000 and taked up to 34 weeks"]a Forrester Consulting survey found that it cost up to USD $25,000 and it took up to 34 weeks go through the AML, KYC onboarding process.[/tweet_dis]
For emphasis, $25,000 and 34 weeks to onboard one client. While the average is lower ($6,000 per client), it indicates the severity of the issue.
With Trulioo’s expertise in automating and streamlining the identity verification process for fraud and compliance systems worldwide, we knew there was a better way. Similar to how we integrated advanced technology for faster, more accurate and cost-effective consumer AML/KYC compliance, we applied new innovations to help digitise and speed up due diligence processes for business verification.
Trulioo’s Global Business Verification Service
Through developing new state-of-the-art technology that integrates with our existing GlobalGateway platform along with numerous data partnerships, we are able to deliver a new solution for those who need to check their business prospects. Now, your compliance staff, customers and executive team have a better way to verify your business customers.
Business Verification fully automates the retrieval of company vitals from government registers worldwide to help streamline workflows for Know Your Business (KYB), Anti-Money Laundering (AML), Know Your Customer (KYC), and Customer Due Diligence (CDD) processes. With Business Verification, it’s easier – and more secure – to conduct business on a global scale.
Start seamlessly onboarding new business customers today, while also mitigating risk and adhering to a diverse range of current and future compliance regulations. For more information:
Contact Trulioo today to start knowing who you are doing business with.