A lawsuit is filed against LifeLabs for a data breach incident

A lawsuit is filed against LifeLabs for a data breach incident

As reported earlier, the Canadian laboratory testing company, LifeLabs was hit with a cyber-attack which resulted in a data breach of 15 million customers. Following the incident, the lawsuit is filed against the company.

On October 28, 2019, LifeLabs reported the data breach to the government partners, however, waited until December 17, to announce publically. The accessed data included some sensitive information, customers’ name, emails, addresses, login credentials, dob, health card numbers, and lab test results.

LifeLabs paid an undisclosed amount to the cyber-criminals who accessed the data with a promise that they won’t disclose any information publically. Nevertheless, the lawyers Peter Waldmann and Andrew Stein filed the statement against LifeLabs in Ontario Superior Court accusing them of contract breach and negligence, on December 27. Moreover, the statement indicated the violation of consumer protection laws and their customers’ privacy. 

The lawsuit was filed on the behalf of plaintiffs also included the lead plaintiff Christopher Sparling. He alleged in the statement that LifeLabs violated their own privacy policy since they failed to implement and follow the adequate cybersecurity measures and checks to detect the potential risks and threats to Customers’ data and swiftly respond them within time.

In addition, the statement also accused LifeLabs to store the customers’ information on unsecured servers and networks without any encryption protocol and they neglected the need to hire cybersecurity professionals for network security management.

While the lawyers are seeking more than $1.13 billion in compensation for the breach victims to make up for the mental anguish, damage to credit reputation and the wasted time that had to undergo, the plaintiffs are looking for additional moral and punitive damages.

After the public announcement of the breach, LifeLabs set up a toll-free helpline on December 18 and received more than 5000 calls from concerned customers. 

CCPA: A Real Roller Coaster for Business Entities

CCPA: A Real Roller Coaster for Business Entities

One huge change in 2020 is the new data privacy law called the California Consumer Privacy Act or CCPA, which is effective from January 1st, 2020. Its results are expected to have impacts far beyond California State.

The CCPA is considered as Calfornia’s equivalent of Europe’s General Data Protection Regulation (GDPR). Signed by Governor of California in 2018, the CCPA grants California residents new online privacy and consumer protection. Even if you aren’t a resident of the Golden State, it may affect you.

What is CCPA and What it’s going to do?

This Act is going to give residents of California the right; to know what personal data is being collected on them and for what purpose is their data is used, who the data is sold to or shared with. They will also have the right to request that their data is not sold to third parties and could be deleted if requested. Furthermore, it also gives citizens the right to access their data collected online.

You may already have come across the impacts of CCPA in the form of the new privacy policy on different websites as they prepare for the implementation of this law. Even though the consumers will not notice a major difference daily, it has a great impact on businesses. The law completely changes how companies will treat customer data.

Even if your business doesn’t have a physical presence in California but you conduct business with residents of the state, then the CCPA may affect you too. While the CCPA is California’s state law, customers and businesses all across the united states will likely benefit.

Most businesses won’t want to deal with the extra overhead of applying to different privacy rules; one for California and one for the rest of the country. Just like the GDPR isn’t directly applicable to non-European countries, it paves the way for new data protection regulations across the globe. CCPA it’s self is inspired by GDPR and will now likely serve as an inspiration for other such laws.

Businesses Affected by CCPA

CCPA will affect the businesses selling products or rendering services to the residents of California. If your company buys or sells data on at least 50000 California residents each year, you are obliged to disclose to those residents what you are going to do with their data and they also have the right to not sell their data.

Moreover, companies generating revenue equivalent to, or more than $25 million or get 50% or more of their annual revenue by selling customer information are affected by the CCPA.

Firms that need to Comply with CCPA

Businesses operating online and collecting any sort of customer data needs to comply with CCPA. Following are some businesses that must comply with CCPA regulations:

Identity Verification Services

As identity verification requires sensitive identification data on customers, the verification services are most vulnerable to data breaches and need to place stringent checks on how to protect customers’ data. CCPA requires that all identity verification services implement their privacy policies amid Califonia Consumer Privacy Act.

Social Media Platforms

Being an important part of customers’ online journey, social media is a preferable platform for targeting the audience of interest. Different social media sites are used to advertise products and services and data available on social media platforms, even though mostly unstructured, contains sensitive information. Mostly personal data from social media platforms are bought and sold without prior user consent and which is why CCPA is going to affect social media platforms.

Are Businesses Ready for California’s New Consumer Protection Act?

As with GDPR, no one’s certain about what it means to be compliant with CCPA. With the start of a new decade, the law is in effect and it looks like consumers, businesses and even the regulatory authorities in California are not ready. Draft regulations for enforcing the act is still to be finalized at the state level.

Despite a lot of concerns before it’s official adoptions last year, GDPR went smoothly at least swifter then what was expected but the CCPA is likely to be a greater compliance challenge. Being the United States’ first data privacy law that gives customers control over their data, the CCPA is expected to create a lot of uncertainties.

Most online companies view the CCPA as being in their long term interest as it’s the first step towards data privacy. The companies, however, are not quite sure whether the law is comprehensive enough to cover all the data protection aspects and deal with all the challenges faced by firms and customers online.

Anyhow, California’s Attorney General says that even though widespread enforcement of CCPA isn’t likely until July, companies shouldn’t consider the first six months as a grace period. He further said, “We are going to help companies understand our interpretation of the law.”

Seeing the hesitations and all the uncertainty built around the implementation of CCPA, businesses consider it to be a real roller coaster ride for both the regulators and the firms that aim to comply with CCPA.   

DC is the Latest State to Sue Juul over Targeting Minors

DC is the Latest State to Sue Juul over Targeting Minors

The District of Columbia is now the latest state to sue c-cigarette maker, Juul Labs, saying the company’s online ads and promotions illegally targeted minors. 

The District of Columbia is following other states in suing e-cigarette maker Juul Labs, saying Juul deceived consumers about the potent nicotine levels carried in its flavored pods. The lawsuit also alleges that Juul failed to satisfactorily verify customers’ ages before selling e-cigarettes through its website. 

The lawsuit was announced Tuesday by the Attorney General of Washington DC, Karl Racine, alleging that Juul’s viral marketing contributed to a sudden increase in underage vaping by teens in Washington and across the US. 

The lawsuit follows other similar lawsuits filed by California, North Carolina, and New York. Other states are also investigating Juul which is currently dominating the US vaping market. The company also faces other charges from the FDA, Congress and other federal regulators. 

Due to numerous lawsuits and intense pressure, Juul has discontinued its advertising in the US and stopped sales of all but two of its flavors. In addition to this, the company suspended all their social media accounts and tightened age verification for their online sales.  

A spokesman of Juul said that the products of the company are only intended for adults and Juul is committed to combating underage vaping. 

 

 

Digital KYC to Trace and Tackle High-Risk Customers

Digital KYC to Trace and Tackle High-Risk Customers

Customers are the assets and building blocks of any business. Customers are responsible for taking businesses to the next level or destroying it to rubble. That is why it very crucial to know who you are dealing with. Know your customer is the procedure to identify and verify customers to check if they are real and not fraudsters or indulged in any illicit activity that can cause a threat to business. It is a process to check the background of customers and analyze the risk factors associated with them. 

The fundamental idea behind the introduction of KYC in organizations was to find a way that can protect the organizations from fraudsters and criminals and doesn’t involve penalizing the innocents at the same time. The KYC process is a standard procedure to verify the customers at the time of onboarding. However, with strict regulations coming into the light, KYC isn’t limited to the verification of the customers, instead, it is now to continuously analyze the customer behavior to look out for suspicious activities and illicit transactions. It is used for the following purposes:

  • To curb fraud schemes
  • To mitigate scam scandals
  • To put a halt on money laundering
  • To hinder illicit fraud transfer and
  • To identify high-risk customers by enhanced due diligence 

Need for KYC to Identify High-Risk Customers:

The KYC laws were introduced as the section of the Patriot Act passed in 2001 after the incident of 9/11 to deter terrorist activities and criminal funding. The section of this act concerned with the financial transactions inserted some new policies in addition to those of “The Bank of Secrecy Act of 1970.” These requirements regulated the banks and other financial institutions. As per the Patriot Act, the organizations dealing with finance are required to meet three main requirements in order to comply with KYC regulations:

  • Customer Identification Program (CIP)
  • Customer Due Diligence (CDD)
  • Enhanced Due Diligence (EDD)

High-Risk Customer Identification Program (CIP)

The customer identification program is a significant component of the KYC process in which the organizations are obliged to ask customers to provide their identification information. It is to verify the identity of the customer who wishes to carry out a financial transaction with a particular bank. The CIP requirement was made compulsory in 2003 for the financial institutions to develop and incorporate customer identification programs into their secrecy policies to meet anti-money laundering (AML) compliance. 

Every institution has its own CIP processes depending on the size and type of the institute. That’s why they may require different documents for verification. Generally, driving license and passports the most commonly required document by the banks. Regardless, some other documents may include: 

  • Utility bills
  • Financial references or statements 
  • Information from a consumer reporting agency or public database

No matter what document or information of the individuals and business is asked, it is to check their authenticity that they are not fake or fall in any prohibited lists so that fake customers and customers at high-risk can be filtered. 

High-Risk Customers Due Diligence

Customer due diligence covers multiple aspects of customer verification and identification. For secure onboarding of clients, it is essential to identify the future risks that can arise due to some customers – the reason why customer due diligence is conducted. While performing due diligence, the significant goal is to analyze customer behavior and predict the type of transaction pattern that the customer is most likely to follow. In an evolving regulatory climate, mobile identity verification can be of great help. It helps organizations in identifying suspicious behavior and assigning a risk rating to customers to identify the customers that can be threatening for organizations and how often their accounts will be monitored. 

The regulatory agencies have set no particular standards or methodologies for conducting customer due diligence leaving the institutions with an open choice to follow their own tools and devices. Many organizations demand a lot of information during the process including banking references, previous financial statements, salary slips, occupation, source of funds, etc. The purpose of this information is to analyze the background and behavior of the customer to predict future risks that may be linked to the customer. 

All this hassle because FinCEN has strictly imposed this requirement on the financial institutes to immediately report any threatening or suspicious activity. And you can’t do it efficiently unless you know your customer behavior and history.

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Enhanced Due Diligence (EDD) for High-Risk Customers:

Enhanced due diligence (EDD) is an advanced and more comprehensive set of KYC procedures for high-risk customers, exhibiting irregular transaction behavior or ambiguous sources of origin. The customers classified under the high-risk category after the Customer Due Diligence (CDD) process are more likely prone to money laundering and illegal funding of terrorists and criminals. They need to be monitored continuously. Considering the trend of such illicit transactions, the USA Patriot Act strictly dictates the institutions that they

 “shall establish appropriate, specific, and, where necessary, enhanced due diligence policies, procedures, and controls that are reasonably designed to detect and report instances of money laundering through those accounts.”

The EDD process includes verifying ultimate beneficial ownership information (UBO) and identifying politically exposed persons (PEPs). Monitoring the transactions is also one of the fundamentals of the EDD process.

High-risk Customers-Venomous for the Business:

High-risk customers are identified from the customer provided by using digital identity verification solutions. Such customers are monitored perpetually for the potential suspicious activities in their accounts so that no forgery can take place like money laundering, account takeover, identity theft, etc. Such customers can be a poisonous threat to business until they exist in the system. Various AI-powered Saas products offer inputs that are useful for the monitoring systems of the business to filter such AML high-risk customers that pose a threat of money laundering. Such a risk management framework will business in assessing customer risk. 

Digital KYC Checks- From Weeks to Seconds:

It is a documented fact that customers are the assets of any organization. Digital KYC is what the institutions need in this era of technology. Based on the principles of automation, the eKYC process can simultaneously execute multiple steps. It reduces the keystroke time, cost and human effort. The process that could take hours and days for an individual can be cut down to seconds with the help of AI-powered solutions and tools. With the use of intelligent KYC verification, the businesses can onboard a more secure clientele and that too with real-time verification, coping up with the regulatory complexities at the same time.

With the world moving into the digital sphere, customer convenience is even more important for any business. The manual KYC process is quite a time consuming and costly process. Clients get exhausted as it takes weeks or even months to onboard a customer. This cumbersome procedure even ends up losing customers as they move to other platforms during this time taking procedure. It is evident now that digital KYC doesn’t only help to identify any customer but helps to filter out customers that have some traits putting them as high-risk customers so that businesses are vigilant while dealing with them. Also, due to the digital revolution, the concept of global onboarding is becoming common which requires more fast and convenient verification and onboarding process. 

Perks of Using Digital KYC Solution:

To end up negative customer experience digital identity verification solution has achieved a milestone. Following are some of the benefits that come up with using the digital identity verification solutions for KYC:

  • Demit Frauds and Scams

Using digital KYC can decrease the risk of frauds like identity theft, credit card fraud, and onboarding high-risk clients. 

  • Increase Security

It’s more important than ever to verify the identities of customers due to an increased risk of terrorist funding and money laundering and other cybercrimes. 

  • Ensure Accuracy

Digital KYC solutions provide a seamless experience where there are lesser chances of errors and omissions. 

  • Provide Better Customer Experience

Digital KYC provides a better customer experience as it takes no time for the whole authentication process. 

In a nutshell, digital KYC clubbed with artificial intelligence is crucial to identify and tackle with high-risk customers that can bring along various dangers for businesses. Business can end up paying hefty fines due to such customers or owners end up losing their businesses. Digital KYC simplifies identity verification for an online business that plays a vital role in this area. In an evolving regulatory climate, mobile identity verification can be of great help. In the coming years, it will continue to morph with surprising speed.

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FastBitcoins Joins Hands with Shufti Pro for Screening of their Customers

FastBitcoins Joins Hands with Shufti Pro for Screening of their Customers

London, UK – (October 2019) Shufti Pro joins forces with FastBitcoins to allow them to provide safe, secure and user-friendly Bitcoin services that enable the Bitcoin economy via their merchant client base. Shufti Pro will provide them a global risk cover through its state of the art AML screening and document verification services.

Shufti Pro is an identity verification and KYC/KYB/AML screening service provider that can verify the identity of people through document verification, face verification, etc. Recently it onboarded a bitcoin business, FastBitcoins and it will verify and perform AML screening on FastBitcoin’s customers in real-time through document verification.

The demand for Bitcoin is growing globally as more people come to understand its worth as a store-of-value. As a result of this, governments around the world are increasing regulatory scrutiny in a bid to maintain fraud-free virtual currencies markets. 

By adopting Shufti Pro’s screening services, FastBitcoins is providing duty-of-care to the people trusting its services, when they are required to identify those they are doing business with, ensuring their legal commitments are fulfilled in a manner that is simple and secure for their clients. The services of Shufti Pro delivers true value for its customers. 

Danny Brewster, MD at FastBitcoins expressed his confidence in this collaboration and said: “Our success comes down to making sure our customers can buy Bitcoin in the fastest and simplest way possible. Where the requirement to verify customer identity arises, Shufti Pro has ensured we can handle it in a straightforward, user-friendly manner. The main reason we selected Shufti Pro is that they offer a reliable technology at a competitive price for a start-up, we are placing trust in them to keep the data provided by our users safe and secure and it was not a decision that was taken lightly when choosing to work with them.” 

Shufti Pro is also excited to onboard FastBitcoins for identity verification and AML screening of their customers. Shufti Pro will provide document verification and AML screening services to FastBitcoins. Mr. Victor Fredung expressed the excitement of his company towards this collaboration and said,

“We’re delighted to have FastBitcoins onboard and look forward to maintaining this collaboration for the longterm. Shufti Pro will deliver its unrivaled risk cover to FastBitcoins through document verification and AML screening of its prospective clients. Our services are best suited for them because we give a truly global coverage in our identity verification services delivered with a high-precision rate.” 

About FastBitcoins 

FastBitcoins provides a complete solution for business owners looking to make extra income from the Bitcoin revolution. Their point-of-sale technology empowers merchants to expand their product offerings and attract new customers with innovative services based around the world’s most recognized digital currency.

Merchants use their simple handheld terminal to let customers buy and sell Bitcoin, make payments in Bitcoin, and purchase prepaid vouchers from over 5,000 international brands, all with no previous experience required.

About Shufti Pro

Shufti Pro is an identity verification service provider that offers KYC and AML solutions to worldwide clients. Using a hybrid approach of AI and HI technology, Shufti Pro delivers results within 30 seconds with accuracy as high as 98.67%. Having verified users in over 232 countries, Shufti Pro is a pioneer in IDV services to cover a large number of countries.

You can visit Shufti Pro here:

Shufti Pro Limited

1st Floor, 35 Little Russell St, Holborn,

 London WC1A 2HH, UK

info@shuftipro.com

www.shuftipro.com

Why CDD is significant for both Know Your Customer and Know your Business verification?

Customer Due Diligence: From KYC to KYB

Why CDD is significant for both Know Your Customer and Know your Business verification?

Banking is a profitable sector but is risky at the same time. Frauds, as well as compliance risks, are often complicated and intricate. The banks and financial institutes are spending a high amount of capital on KYC compliance, which surpassed $100 billion in the year 2019. Even with this much investment, global banks have been fined $321 billion since the global crisis in 2008. Further complicating these risks is the fact that financial crimes such as money laundering, terrorist financing, and cyber frauds are increasing.

On the other hand, regulatory authorities are striving hard to enforce measures that could lead to the eradication of financial crimes. One of the first regulations that were enacted amidst the Vietnam war back in the 1970s was BSA. US regulatory authorities issued the Bank Secrecy Act of 1970 (BSA).

The purpose of this law was to counter money laundering activities emerging from illicit drug trafficking. Under this provision, banks are obliged to report any customer activity that seems suspicious such as transaction above $10,000 to the Federal Financial Crimes Enforcement Network (FinCEN).

The regulations aimed to make it difficult for the drug cartels, terrorists, and other lucrative criminal enterprises to launder money by making their transactions more visible to law enforcement agencies.

Introduction of Customer Due Diligence as Know Your Customer (KYC) regulations

 

The Banking Act of 1970, laid the foundation for the Anti Money laundering (AML) regulations later in US patriot Act, 2001, after the tragic incident of 9/11. Customer due diligence (CDD) was declared necessary for the financial sector. The term coined for performing CDD is Know Your Customer or KYC.

The KYC regulations were fortified to restrain the flow of money to the terrorists. It requires financial institutes to verify the customer to ensure that they are, who they claim to be. These regulations led to the adoption of various approaches to comply with CDD and KYC laws. Since the US regulatory changes affect the landscapes of the global financial sectors, these regulatory changes were accepted by the banking sector worldwide.

Financial Sectors adopted several ID verification controls to respond to these regulations. These ID verification controls include:

  • Maintaining a thorough Customer Identification Program (CIP).
  • Verifying customers against the list released by Law enforcement agencies.
  • Predicting, customer’s behavior and criminal risks associated with a particular entity, based on the statistical data.
  • Ongoing screening of the transactional activities of suspected customers.

It continues to be the main line of defense for the financial sector against financial crimes, with minor amendments. For a simple person, this law appears comprehensive. However, in June 2016, a loophole was identified in KYC compliance regulations. 

The banks weren’t required to verify the identity of stakeholders and beneficiaries of the businesses they provide services. It was after Panama Papers Scandal the world realized that apparently, legitimate businesses could hide the identities of bad actors and perform illegal activities on their behalf. The regulatory authorities identified the risk and issued a fix as Know Your Business (KYB).

Tying up Loose Ends with KYC Verification

 

This fix made by regulatory authorities in the KYC checks includes the Customer Due Diligence for the financial institutes. Under the new provision, Financial institutes are now required to perform stringent verification checks. KYB regulations are aimed to identify the shell companies that are involved in money laundering and other illicit financial crimes. 

Firms are required to verify the person who owns the business legally as well as, the identity of stakeholders owning a minimum of 25% share in the business. European Commission also introduced the same legislation in its 4th AML Directive (4AMLD). This process of business verification was improved, with new regulatory changes in AMLD5 and AMLD6, which are aimed to make due diligence transparent.

However, KYB compliance is not easy to achieve as it seems. The major problem in KYB verification is the identification of shareholders in the businesses. Most of the time, no record of these entities is available and to make things worse, the disclosure requirements in each jurisdiction varies. This sometimes makes it impossible to identify the stakeholders in the business. It is a recipe for disaster, for the firms who want to stay in compliance.

Turning towards Technology for Solution 

 

Emerging from the ashes of the global financial crisis in 2008, the new regulatory technologies are helping to ease the burden of compliance by reducing the operational costs as well as mitigating the risks for financial crimes. At the crux of these technologies, is the use of new technologies such as Identity verification and KYC identification, to help financial institutes to monitor, comply and regulate. The RegTech solutions are already assisting financial institutes to meet KYC and AML regulations.

Businesses need to stay one step ahead of the fraudsters. With a comprehensive approach to global risk mitigation, businesses could easily prevent fraudulent activities and stay in compliance with regulatory authorities. 

RegTech industry is rendering efficient AI-based solutions for Business verification solutions that can eliminate the inefficiencies and risks involved in onboarding new customers. For instance, automation of official document checking process and verification against the government issued registries. 

The future of RegTech is expected to see great adoption in the financial sector in the future. Owing to the changes in regulatory compliance, performing KYC and KYB verification parallelly will enhance the customer due diligence process and businesses to stay compliant.

KYB know your Business

Know Your Business: The Next Step in Identity Verification

The complex regulatory environment and increased exposure to illegal activities indicate that business verification is in the best interest of regulated companies eyeing long term stability. According to the UNDOC, money laundering is estimated at 2-5% of global GDP, amounting to almost $2 trillion. Digital data breaches have also increased substantially over the recent past, with rising threats of virtual ID theft.  

In order to counter this, banks are spending more than $48 million on due diligence and KYB processes, with rising onboarding costs, as reported by the Thomsons Reuters’ survey. 

With the advancement in digital technologies and virtual data sets, KYB compliance and verification tools can help mark businesses that are involved in undercover activities and transactions. International requirements of both KYB and AML are increasingly reflecting the need to secure business transactions and prevent illicit financial flows from entering the formal sector. 

The Regulatory Approach to KYB

Businesses face strict regulations that require them to identity and verify customers before onboarding them. The 4th AML Directive, in particular, puts emphasis on stringent audit trails that help prevent fraud and financial crime. For this purpose, Digital Verification Services such as KYC and AML screening have proven to be significantly effective in improving compliance procedures. 

In a similar tune, regulatory requirements, such as the AMLD5 directive, now demand strict evaluation of both individual clients and commercial entities before carrying out business with them. This is to ensure that financial institutions and other businesses can avoid being connected to illegal transactions conducted by their clients. 

Money launderers often get under the cover of businesses and the EU is rolling our stricter regulations for customer due diligence to stamp out aggressors. For regulated companies, this translates into a legal compliance requirement for which the adoption of a duplicate screening process for suppliers, vendors and traders becomes important. Other regulations such as the GDPR, PSD2, and FinCEN also require companies to be aware of the Ultimate Beneficiary Owners (UBOs) of entities before beginning a relationship. 

According to new registration demands of the AML directive, all EU states are required to maintain national registers of beneficial ownership information on corporations and other legal entities. All companies and their owners now have to get their details registered, making it all the more easy to identify individuals involved in illegal activities through a business. Information of such regulated businesses will be made available to companies with a legal interest in business relationships.

KYB Process 

Similar to KYC, Know Your Business (KYB) is a Verification Solution that cross-checks business identity by extracting official commercial register data using APIs. Using a business’ registration number and jurisdiction code, an efficient digital KYB service can collect verifiable information for the business. 

Access to automated commercial registers through a data-powered business verification service make the due diligence process swift and free of errors, while saving valuable time and manpower. 

Business Search 

 

This includes background data on the company: registered address, current status, company type, UBOs, previous name, trademark registration. A financial summary of the company’s operational accounts is also provided by the authentication service, in order to better validate its authenticity. 

Business FIlings

 

In addition, business filings offer instant, verifiable information about company financials; access to financial statements, sources and links to downloadable reports (such as register reports, annual accounts and shareholder lists). 

Business Statements 

 

Business statements can help companies stay on top of changes in management and organisation of connecting businesses. A change in directors or beneficiary owners can also reflect an evolving business environment, indicating the need for followup information on business matters. 

Business Networks

 

Detailed information on corporate structure also provides insights into parent entities and lists of company subsidiaries (child, sister companies). Key factors under consideration are also based on the country in which the business is registered, the nature of business activities and the value of transactions it carries out. 

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Challenges in KYB

 

By far, one of the foremost challenges in KYB compliance lies in accessing beneficial ownership information, especially in jurisdictions that do not require companies to submit relevant documentation. A lack of shareholder information can make it harder to investigate money trails and business authenticity, leading to potential non-compliance costs. 

Timely availability of data, in the right format, is also another hindrance, especially as company structures and management change over time. Storage and interpretation of data is also subject to a number of factors, mainly centering on companies adopting a manual approach to due diligence processes. 

Moreover, companies that are currently implementing KYC processes have ample room for improvement in process efficiency, costing banks millions of dollars in lost time. It follows that digitization of KYB verification solutions will also be a tedious process of hit-and-trial before firms can grab its full potential. 

Business Verification: Moving Forward

 

When it comes to risky transactions, regulatory authorities are not ready to bend their rules. The 6th AML Directive is also ready to be implemented soon, which indicates little or no leniency for financial institutions or businesses in the coming future. Therefore, KYB is central to the efficiency and transparency of firms doing business. 

Data analytics software that aggregate and updates information about businesses assists stakeholders in keeping tabs on their operations and practices, as well as fulfilling due diligence requirements of KYB.

As a one-stop solution for business verification, Shufti Pro offers a cost-effective solution of due diligence review of companies. With an electronic identity verification (eIDV) service, the authentication process for business entities is made easier and more accurate. The integration of APIs and data-driven systems now allow easier extraction of data, as well as smoother coordination mechanisms for compliance review. 

Transparent B2B Relations 

 

As a pre-emptive measure, businesses can use KYB solutions as fraud covers in case of a breach. Using the right mix of technology and support, full coverage of business financials and organizational structure can be accessed in order to trace business activities. This also allows firms to maintain updated company databases for better workflows. 

Business reputation is also incumbent upon due diligence processes that are reliable and foolproof. As a consequence, identification and verification of the beneficial ownership of connecting entities is vital to solving verification challenges.

Effortless Regulatory Compliance

 

A user-friendly interface allows businesses to fulfill regulatory compliance needs without any friction. Potential losses and non-compliance penalties diminish productivity for firms willing to extend their business networks. Reputational damage is also a leading cause of business failure when it comes to carrying out business with suspicious entities. 

With a comprehensive approach to risk mitigation, online KYB authentication services provide strong risk-shields against such losses, securing long term benefits for all concerned parties.