Onboarding corporate customers can be a long, complex, and often disruptive process for businesses that manually undertake their compliance checks. Using KYC-Chain’s end-to-end workflow solution, companies can now carry out extensive KYC checks in a matter of minutes.
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Businesses that count other companies among their customer base require Corporate KYC.
Basic Corporate KYC information can include:
- Understanding who controls a corporate entity – its Ultimate Beneficial Owners (UBOs) or Persons of Significant Control (PSC)
- The jurisdiction it is registered in
- Whether it is a fully licensed and registered entity
Additionally, it is also often essential to carry out Enhanced Due Diligence (EDD) on businesses flagged as potentially risky. EDD is a Corporate KYC process that can include analyzing whether a corporate entity:
- Is connected or does business with any sanctioned parties or in sanctioned jurisdictions
- Has a history of legal sanctions or fines
- Is featured in any adverse media or watchlists
Inefficient Corporate KYC: Expensive and Time-consuming
Banks and other regulated organizations’ traditional approach to corporate KYC has traditionally involved carrying out due diligence on potential corporate customers using time- and resource-intensive manual processes. This tends to involve a company’s internal compliance team(s) conducting manual research of multiple government registers, sanctions watchlists, and adverse media databases to identify whether a prospective corporate customer poses a risk from a regulatory standpoint.
This is particularly the case when dealing with small or new businesses with less identifiable history or track records.
Another major challenge of manual CDD/KYC is drawn-out periods of onboarding. According to a February 2021 article in Finextra, it takes FIs an average of 3-4 months to successfully onboard a corporate customer.
While KYC-Chain is known for its advanced KYC checks for individuals, our end-to-end workflow solution also boasts powerful Corporate KYC features to ensure the corporate customers you onboard will not cause you any regulatory problems. It also makes the process incredibly fast.
Let’s take a look at how KYC-Chain’s Corporate KYC capabilities work.