Mar 09, 2022
3 min read

Seamless Business Onboarding: Sumsub Introduces an All-in-one Know Your Business (KYB) Verification Solution

Check out this brand-new customizable solution for swift onboarding, regulatory compliance and effortless checks.

This month, Sumsub is launching a KYB solution for verifying companies and beneficiaries that’s backed up with certified AML compliance expertise. Forget about endless manual checks, heavy compliance expenses and needless onboarding delays—now just one authorized representative can verify a company (plus its beneficial owners and representatives) through an intuitive interface.

What is a KYB check?

KYB stands for “know your business” and is a set of practices that verifies businesses by screening companies and their beneficial owners. This is in order to reduce threats of money laundering and fraud.
The procedure is mandatory for financial institutions and other AML-regulated entities (online payment services, online banking, crypto marketplaces and services, etc.). Basic ​​KYB checks include the following steps:

  • screening sanctions lists, global watchlists, PEPs lists, adverse media and other similar sources;
  • collecting company details;
  • establishing the company’s corporate structure, which includes identity verification of its ultimate beneficial owners (UBOs);
  • verifying corporate data using documentary and other credible sources;
  • applying the risk-based approach to determine whether enhanced due diligence is required.

The KYB check has multiple levels which can vary by jurisdiction and legal entity type. For instance, an initial check may reveal that the company is based in a country with a weak AML infrastructure or that its management includes Politically Exposed Persons (PEPs). In such cases, the KYB check can be enhanced with additional due diligence procedures, such as source of funds checks.

Why is KYB important?

There are two main reasons why KYB checks are necessary:

  • Fraud prevention. KYB helps companies to detect and eliminate fraudsters among their counterparties. This helps reduce the financial and reputational risks of money laundering, terrorist financing and fraud.
  • Regulatory compliance. KYB helps AML-regulated companies understand whether their partners, customers or suppliers are:
    • subject to sanctions or other adverse regulatory action;
    • involved in financial crime;
    • presenting money laundering risks.

KYB is legally required by national AML laws, regional regulations (i.e. EU Money Laundering Directives), and non-binding standards and guidelines (i.e. FATF recommendations).

How Sumsub’s KYB solution benefits businesses

Sumsub’s all-in-one KYB solution includes KYC checks, which enable verification of UBOs, representatives, and other individuals. All this is made possible within a single dashboard where users can:

  • set up automated check levels;
  • perform in-depth investigations;
  • provide the applicant with feedback (e.g., requesting additional docs);
  • generate reports, etc.

The average processing time for business verification is 3 hours, but may take longer depending on the complexity of the entity’s structure.

Other advantages include:

1.Speedy user onboarding

Users get onboarded in a few minutes with a customisable widget that collects all required information from businesses and individuals via the Web SDK.

2.Easy integration

The solution is integrated via Web SDK or RESTful API, with an uptime of over 99.996%.

3.Reduced verification costs

Sumsub automates the entire business verification process, which cuts costs and reduces manual workload.

4.Regulatory Compliance

Users get access to multiple corporate registries and AML sources, including all available global watchlists, PEPs and sanctions lists (US Department of Treasury, EU, UN etc.). This is in addition to some other key compliance benefits:

  • data on more than 200 000 000 companies and beneficiaries from global and local registries;
  • one authorized representative can upload all documents;
  • automated AML checks (Politically exposed persons (PEPs), global sanctions lists, adverse media, etc.) applicable to more than 190 countries;
  • KYC checks that include video verification where necessary.

Since corporate registry data rarely contains sufficient information on UBOs, Sumsub examines corporate documents and additional sources to reveal the true control structure of a company.

How Sumsub’s KYB solution works

  1. The company integrates KYB via web SDK or generates links for verification and sends them to applicants manually;
  2. The applicants set the verification flow based on the company’s KYB requirements (what documents and data have to be collected, which individuals have to pass KYC, etc.);
  3. The applicants upload documents and other data required via the widget or manually through the dashboard;
  4. The company can check the applicant’s uploaded docs and perform AML and registries checks themselves, or delegate this function to Sumsub’s KYB specialists;
  5. Beneficiaries are checked via KYC procedures according to the company’s requirements and jurisdictional specifics;
  6. The final report is available for viewing and can be downloaded.

Our certified AML compliance specialists will help you build the flow according to the risks detected and tailor the solution to your business specifics. Plus, Sumsub provides 24/7 customer support, and our customer success team is always ready to answer any questions and show you how to take full advantage of the solution.

Learn more about our brand-new KYB solution. Request a demo today!

AMLAutomationDigital IdentityFinancial InstitutionsFraud PreventionKYBKYCMachine LearningRisk-Based Approach