Why knowing the Ultimate Beneficial Ownership(UBO) is important in KYB
Why it is important to Know Your Business(KYB)?
Just as knowing your customer is important in a B2C environment, knowing who you are doing business within a B2B environment is crucial. There is a person or entity behind every transaction. We call the person an Ultimate Beneficial Owners (also referred to as Ultimate Beneficial Ownership, UBO). Verifying the identity of the natural persons from companies is under the Customer Due Diligence(CDD) Rule, therefore KYB is part of the compliance.
The CDD Rule aims on improving financial transparency and prevents criminals and terrorists from misusing companies to disguise their illicit activities and laundering financial aids. Therefore it is critical to identify and verify the identity of the company, the UBOs. The rules can lead to a financially transparent environment and prevent any nefarious behavior.
The CDD Rule Requirements
1.identify and verify the identity of customers
2.identify and verify the identity of the beneficial owners of companies opening accounts
3.understand the nature and purpose of customer relationships to develop customer risk profiles
4.conduct ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information
Transact with business through the KYB check
Knowing who are you doing business with can guard you against any risks related to money laundering or terrorist financing. Through the KYB process, the KYC solution provider can identify and verify an accurate company record such as information regarding register number, company name, address, status, and key management personnel.
From the gathered information, the KYC solution provider can analyze the ownership structure such as who the entities or natural persons are and how much the percentages they have.
Through the calculation, identifying the Ultimate Beneficial Owners is possible. And with that, KYC and AML check is done for financial transparency and meeting compliance.
Why ARGOS KYC solution for KYB check?
ARGOS KYC also provides a KYB solution to B2B customers.
ARGOS KYC can:
•identify Ultimate Beneficial Owner's(UBO) identification
•understand KYB corporate applicant structure
•provide KYB submission page service to the business client
•issue corporate AML screening report
•analyze money laundering and terrorist financing risk analysis
•communicate directly with KYB applicants
It is no hassle work for you. All the process which includes verifying the identities of UBOs and analyzing any possible risk analysis are handled by the ARGOS KYC team. We got you covered in identifying who you are doing business with. Transact with the verified business partners with safety. Got you covered.