Khurram Akhtar, co-founder of ProgrammersForce, discusses the importance of “know your business” (KYB) verification processes in the fight against financial crimes and fraud. While most businesses are familiar with know-your-customer (KYC) requirements, KYB focuses on verifying the legitimacy of companies that a business intends to work with. By implementing reliable KYB procedures, businesses can ensure the authenticity of their partners and unlock growth opportunities. KYB is essential for maintaining brand integrity and compliance with regulatory obligations.
In comparison to KYC, which is focused on individuals, KYB targets business entities and stakeholders such as ultimate beneficial owners and suppliers. Both KYC and KYB aim to enhance anti-money laundering regulations, prevent financial crimes, and secure business operations. Implementing KYB procedures can help businesses meet compliance requirements, onboard real and legitimate partners, enhance security measures, limit crime risks, improve conversion rates, and elevate their reputation in the industry.
To streamline and accelerate the business verification process, some companies, including Akhtar’s ProgrammersForce, opt to use automated technologies. Before investing in KYB solutions, businesses should prioritize their goals, determine their specific needs, assess current practices, and decide whether to build or outsource KYB processes to third-party vendors. Challenges in implementing KYB solutions include accessing business data, verifying ultimate beneficial owners, and identifying legitimate partners while balancing compliance and business objectives.
It is important for companies to track key metrics of their KYB procedures, iterate, and improve their processes to meet evolving business demands. By mastering the art of balancing compliance, user experience, and business verification, companies can effectively navigate challenges and take the first steps toward implementing KYB processes. The Forbes Business Council, a prestigious organization for business owners and leaders, offers growth opportunities and networking for qualified members like Akhtar.
