The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    us

    2a03:2880:f800:11::

    Five Solutions to tackle business verification challenges

    Five solutions to tackle business verification challenges

    Know Your Customer (KYC) is critical for verifying the clients before doing business with them, but to authenticate businesses is as important as KYC for individuals. This is why regulators are increasingly focusing on business verification to help prevent money laundering and terrorist financing. Business verification, which includes authentication of businesses, UBO identification, and risk assessment of business entities, is been included in the new AML directive of the European Union, as well as other major regulatory authorities. Know Your Business (KYB) services market is projected to grow $11.8 billion, according to an OWI lab report.  

    Corporate KYC isn’t just a regulatory requirement it helps businesses in identifying the shell companies and other corporate structures involved in illicit funds transfer. The disruptive technologies like artificial intelligence, machine learning, and automation are creating opportunities for quick and real-time customer due diligence and KYC verification. However, many of these solutions focus on KYC for individual and retail customers.

    Verifying businesses in the past has been a difficult and time-consuming task. Normally the KYB process for financial institutes to verify the corporates involves manual checks and physical verification, which makes it more tedious and lengthy. 

    Challenges associated with business verification

    With the new KYC/AML regulations, business is required to verify customers, corporate clients, and other critical information. However, there are multiple challenges when verifying a business client and some of them are:

    Time taking manual onboarding process

    Normally, KYB verification for corporate onboarding is a tedious and manual process, requiring intensive labour. These delays lead to frustrating customer experience and customers are more likely to abandon the account creation process. Moreover, there are chances of errors and mistakes when it’s done manually.

    High compliance cost

    According to a report, the average KYC cost for businesses crossed $48 billion in previous years. This includes manual labour and third-party payments. All this is raising concerns about AML and KYC compliance costs becoming so high that they prevent businesses from being able to perform other daily tasks.

    Complex ownership structure

    Latest KYC/KYB regulatory directives such as AMLD5 and FinCEN CDD rules make it necessary to verify and identify the business entities as a mandatory regulatory requirement. Financial institutions are reliant on collecting business details from clients through a manual process by filling in forms and then verifying the information manually. There are high chances of data discrepancies to slip in.

    Data inconsistencies

    While companies could somehow afford all manual works but a problem that still persists is data verification sources. There are many sources where companies’ data can be found, and sometimes the information available on some file is outdated or incorrect.

    Addressing the challenges

    With an increase in regulatory requirements, there is a need for developing an appropriate procedure and process that facilitate financial institutes. Here are some solutions that could help businesses: 

    Automated KYB onboarding

    By employing the latest technologies, automated business verification solutions can solve these problems. AI-powered corporate verification solutions will provide an opportunity to enhance the efficiency of the corporate onboarding process, by reducing the cost and making it faster. 

    Ongoing monitoring for business verification

    Businesses should monitor their corporate clients regularly to identify and monitor any changes in the company’s structure, the appointment of new executives, and changes in beneficial ownership. This practice also helps in monitoring PEPs continuously. It will assist companies in adopting a structural approach for business verification.

    Access to authentic business registries

     As discussed earlier, access to the correct and most updated data is a challenge in performing business verification. However, if the companies have access to the correct and most up to dated business registries is valuable and will make business compliance an easy task.

    API integrated KYB solutions

    Shufti’s API integrated solution aggregates data from various sources, so businesses only need to enter the required details such as the business registration number and the jurisdiction code where the business is operating. This centralized verification help manage the complexity involved in onboarding and monitoring corporate clients.

    Virtual Identification

    With an increasing compliance cost, businesses are now turning towards automated software that helps businesses to perform necessary business checks. Shufti’s KYB verification solution is specifically designed to reduce extra compliance costs and dealing with complexities involved in working with high-risk clients.

    As the global business markets are growing at an increased pace, companies need to get grip on customer due diligence for both individual and corporate clients.

    Related Posts

    Blog

    How to Choose Between Document and Non-Document Verification: A Compliance Perspective

    How to Choose Between Document and Non-Document Verification: A Compliance Perspective

    Explore More

    Blog

    How to Mitigate Bias in KYC and AML: A Compliance Leader’s Guide

    How to Mitigate Bias in KYC and AML: A Compliance Leader’s Guide

    Explore More

    Blog

    AI-Powered KYC: The New Frontier for Financial Inclusion in Fintech

    AI-Powered KYC: The New Frontier for Financial Inclusion in Fintech

    Explore More

    Blog

    Stopping Man-in-the-Middle Attacks: How Advanced KYC Shields Digital Trust

    Stopping Man-in-the-Middle Attacks: How Advanced KYC Shields Digital Trust

    Explore More

    Blog

    How Does EU’s DORA Affect Fintechs Operating in Europe?

    How Does EU’s DORA Affect Fintechs Operating in Europe?

    Explore More

    Blog

    UK Age Verification Laws Enforceable July 2025: What You Need to Know and How Shufti Can Help

    UK Age Verification Laws Enforceable July 2025: What You Need to Know and How Shufti Can Help

    Explore More

    Blog

    The Deepfake Challenge: Strengthening Compliance in Remote Identity Verification

    The Deepfake Challenge: Strengthening Compliance in Remote Identity Verification

    Explore More

    Blog

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights

    Explore More

    Blog

    How to Choose Between Document and Non-Document Verification: A Compliance Perspective

    How to Choose Between Document and Non-Document Verification: A Compliance Perspective

    Explore More

    Blog

    How to Mitigate Bias in KYC and AML: A Compliance Leader’s Guide

    How to Mitigate Bias in KYC and AML: A Compliance Leader’s Guide

    Explore More

    Blog

    AI-Powered KYC: The New Frontier for Financial Inclusion in Fintech

    AI-Powered KYC: The New Frontier for Financial Inclusion in Fintech

    Explore More

    Blog

    Stopping Man-in-the-Middle Attacks: How Advanced KYC Shields Digital Trust

    Stopping Man-in-the-Middle Attacks: How Advanced KYC Shields Digital Trust

    Explore More

    Blog

    How Does EU’s DORA Affect Fintechs Operating in Europe?

    How Does EU’s DORA Affect Fintechs Operating in Europe?

    Explore More

    Blog

    UK Age Verification Laws Enforceable July 2025: What You Need to Know and How Shufti Can Help

    UK Age Verification Laws Enforceable July 2025: What You Need to Know and How Shufti Can Help

    Explore More

    Blog

    The Deepfake Challenge: Strengthening Compliance in Remote Identity Verification

    The Deepfake Challenge: Strengthening Compliance in Remote Identity Verification

    Explore More

    Blog

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights

    Explore More

    Take the next steps to better security.

    Contact us

    Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

    Contact us

    Request demo

    Get free access to our platform and try our products today.

    Get started