Streamlining KYC and KYB for Trust and Compliance

Sep 26, 2023 | Blog, KYC, News & Events

With eCommerce continuing to experience exponential growth since increasing over 50% to over $870 Billion over the course of the pandemic (source), financial fraud and digital criminal activity have risen in tandem, posing a significant threat to financial institutions and businesses globally. Know Your Customer (KYC), Know Your Business (KYB), as some regional jurisdictions prefer, protocols are designed to help close the many gaps present in our evolving digital economy, and to minimize the risk of your businesses becoming unknowingly complicit in criminal activity.

KYB practices help to ensure compliance with anti-fraud and money laundering measures, as well as build trust amongst your existing and prospective customers. At iComply, we know the value of putting trust in every transaction. Below, we’ll take a closer look at the benefits of streamlining your KYB/KYC measures, as well as the importance of choosing the right compliance partner for your organizational needs. Read on to learn more.


KYC vs. KYB, What’s the Difference?

While many may already be familiar with the standard practices involved in KYC efforts, there can often be confusion as to what differs between KYC and KYB measures. Both share the same ultimate goal of verifying and assessing core identification metrics to build trusted risk profiles, but KYB, in particular, often involves more advanced data analysis (Enhanced Due Diligence) in order to properly assess the many unique details associated with corporate entities and institutions that must meet compliance regulations.

While standard KYC and customer due diligence (CDD) may be satisfied with basic records and identity documents, KYB and related EDD protocols demand a higher level of documentation that includes core details like sources of wealth, corporate structuring, identification of the ultimate beneficial owners (UBOs), known associations and previous business dealings (as well as previous business names), etc. Where one might consider KYC to be a more “B2C” oriented form of fraud protection, KYB focuses more on “B2B” elements that stop money laundering, terrorism funding, and other illicit activities from infiltrating the market at a corporate level.

When utilized efficiently, KYB can help your business grow in the following ways:

1. Compliance

2022 saw just shy of $5 billion handed out in AML fines, and with cybercrime showing no signs of slowing down, businesses cannot afford, either ethically or financially, to remain negligent in the face of renewed threats from money launderers, traffickers, fraudsters, and others that seek to use funds for illicit methods. Staying compliant ensures that every transaction originating from and travelling through your organization is above board, and helps maintain a position of trust for consumers within the market.


2. Better Business Partners

Alongside trust in your customer demographic, your business will also benefit from knowing that everyone you choose to partner with is as legitimate as they claim to be. Instead of onboarding companies with excessive risks to your portfolio, you can rest easy knowing your clients are ethical and financially sound to work with. Additionally, as KYB protocols require consistent monitoring, you’ll also be able to stay on top of any evolving points of consideration, including potential sanctions, corporate restructuring that may introduce members with a higher risk profile into the fold, and avoid shell companies that serve as a front for illegal activity.


3. Secure and Streamlined B2B Interactions

KYB processes make it safe to do business with other businesses, even outside of your clientele. KYB helps to remove the risk of partnering with unknown entities by identifying UBOs and key shareholders, as well as relevant financial history, meaning that you can enter into partnerships confidently. When both parties know exactly who they’re working with, many of the headaches and pain points associated with interactions, and when both parties maintain a robust KYB system, finessed documentation can significantly reduce onboarding time.

KYB Implementation with iComply

At iComply, we know that streamlined KYB software is one of the best ways to remain in alignment with all compliance standards, avoid fines, and build a foundation of trust among your peers and clientele. Our modular suite of KYC, KYB, and AML products not only ensures you have everything you need to manage and maintain a wide range of jurisdictional KYB regulations and conduct risk-based assessments but also automates your customer identification and risk screening processes more intuitively than ever before.

Book a demo with our team today to learn more about iComply’s compliance solutions and discover how iComplyKYC can be customized to fit the unique risk screening needs of your organization.


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