Corporate
KYC, or Know Your
Customer, is the process of vetting a
business or corporate entity and its beneficiary owners for the purposes of
AML/KYC compliance. In this blog post, you will learn what corporate KYC entails, what information a corporate
customer is required to provide, and how corporate KYC
processes can be automated with simple tools.
Why is corporate KYC important?
It is crucial to know who your
customer really is during
customer onboarding in order to identify any potential risks they may pose in a
business relationship. In an effort to combat money laundering, financial crime, and other illegal activity, the international community has been widening the scope of KYC regulations, requiring banks and
businesses to comply with new policies that are more stringent than ever before.
You can usually find this information on
company registration
documents, which are often available online. If corporate KYC becomes too cumbersome, you can use a
service that provides corporate KYC
services.
What information do customers need to share?
In addition to
company registration
documents and tax numbers, beneficiaries may also be required to provide some
personal information such as passport number or an
ID card. However, it is important not put undue pressure on a
customer relationship by asking for this information.
KYC
processes vary by country and by
industry. Financial
services typically involve diligent KYC checks, whereas telecommunications companies have more lax requirements. Nevertheless, corporate clients always need to share information that is verifiable. The bare minimum is usually full name, date of birth, and address.
How to automate the corporate KYC process
A corporate KYC
service provider will use your
customer's
company registration
documents to obtain the necessary information and verify that it is valid against a global database. When they have completed their screening, you'll get an assessment via email or instant message.
You can also use corporate KYC automation
services to create a corporate risk score for your corporate clients and then monitor daily transactions based on that score. These scores enable you to focus less on low-risk
customers, which lets you have more time for analyzing high-risk transactions or accounts.
How does corporate KYC help banks?
A corporate KYC
service provider will provide you with a corporate risk score and monitor daily transactions based on that score. These scores enable you to focus less on low-risk
customers, which lets you have more time for analyzing high-risk transactions or corporate clients.
