Businesses these days, stay in search of ways to maximize their work operations. The best thing they can do is to collaborate with other entities to expand their circle and get their work done. After complying with the Know Your Business, this enhances the productivity for both the companies, firms perform the work which they do the best. It can happen in two ways, companies working towards the same goal can maximize the outcome of the organizations based on different work can achieve each others’ goals by providing useful resources.
Whatever the case may be, both the businesses benefit from each other and develop a strong professional relationship. Businesses need to verify their partners before building a strong relationship with them. Know your business (KYB) assists firms to identify the corporate partners in an efficient way. It is imperative to identify the other entity before entering into a professional relationship with them.
Know Your Business Regulations
The advancement of technology has benefitted the fraudsters in a huge way. They use innovative ways to destroy the companies. The idea of shell companies has become so common these days that it is nearly impossible to differentiate who is who and what is what? Shell companies are fake, paper-based entities on a temporary basis. Hiding behind the wall of customers to now being the potential partners, imposters are trying every possible way to commit fraud.
In this age when you can not guarantee the person you have known forever, it is foolish to trust any company by simply seeing their presented documents. Compliance professionals have established laws to safeguard firms and their customers. Complying with the KYB checks, businesses can ensure that they are fulfilling the duty at least from their end.
Verifying businesses is a whole process just like KYC. In KYC, customers have to show their ID documents to get their verification process done and know your business meaning companies have to show their official documents.
Documents Required in Know Your Business checks
While performing Know your business verification, businesses need to show their identity documents. These documents contain basic data of the firm such as their registered name, official address, date of emergence, and the main purpose they are running the business for.
- The document business filings possess all the financial data of the company such as the transactional history so that the potential partners may get to know that you are part of any money laundering activity in the past
- Business statements in know your business portray the complete working environment and the culture of the company
- Irrespective of statements and filings, another important thing that businesses have to verify is the company network. All the data relevant to company networks such as its interaction with other firms, information related to sister companies (if the organization has any) is included in it
- Business verification services in know your business also identify the Ultimate Beneficial Owner (UBOs) through know your customer. All the important steps of KYC are performed while authenticating the true ID of the company owner
Benefits of Building a Strong B2B Relationship
Company verification is an automated process that can be completed within just a short span of time. Thai digital process also reduces the chances of human error in the process. Because of the online process verifying companies was never easy like it is today. As they say, two brains when combined, produce even greater things similarly, two businesses integrated can add value to each other.
Some of the advantages are:
- Expanded Business Reach
Two businesses combined together can provide a wider business reach to each other. It is very beneficial for businesses to obtain monetary gains. They enjoy a suitable revenue for this collaboration. Expanding their work scale offers them a reasonable revenue-generating technique. Know your business provides businesses with this perk.
- Maximizes Productivity
This is obvious that sharing their work with other entities provides businesses a chance to focus their abilities on work that is specific to their expertise.
Summing up
Businesses in different sectors like healthcare, government, law enforcement agency and the financial sector are implementing know your business solutions to identify their potential corporate partners. Imposters usually hide behind shell companies to damage genuine firms. Henceforth, it is imperative to comply with Know your business checks to ensure the elimination of scams.