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Business Verification: A complete guide

Business verification is a 360-degree audit or investigation to evaluate any risk from a financial, legal, operational, or regulatory perspective. It is done before onboarding any business or forming any deal/relationship with the third parties to have prior knowledge of the risks involved. For example, when considering to take business services from another company, it is important to verify them to avoid legal hassles in the long run. 

Similarly, ensuring KYB (Know Your Business Verification) is done to validate different kinds of businesses such as vendors, agencies, clients, suppliers, merchants, startups, as well as directors, leadership, and much more. It involves digging through past and present records, conducting reference checks, verifying business credentials, details related to incorporation, directors and financial statements, service and tax registration, and much more.

Challenges in Business Verification & Onboarding

Evaluating businesses and third parties before onboarding them on different aspects is a complex task. Varying regulations, lengthy verification processes, and diverse identification standards make it difficult to gather up-to-date information for due diligence. 

It’s an uphill battle to make the verification process fast and seamless for your partners as well as ensure that only legitimate ventures are being onboarded. You cannot risk your business reputation and profitable returns by associating yourself with illegitimate ventures that are on false fronts for bad reputation, corruption, or money laundering.

A robust method for business verification can validate all relevant facts and save from unforeseen legal troubles in the future. KYB compliance contributes to informed decision-making by providing valuable insights and actionable data to decision-makers. It helps companies to understand the nature of a deal, the type of risks that will be involved, or any other red flag that might need their attention before the association.

Key checks for business verification services

  • Government Regulatory Compliance Checks 
  • Industry Compliance Checks
  • Financial Due Diligence 
  • AML and Continuous Monitoring
  • Reputational Due Diligence
  • Linked Associations 
  • Risk Scoring and Compliance Reports
  • Criminal Record Checks 
  • FCPA Compliance
  • Denied Party Screening (DPS)
  • National and Global Watchlists 
  • Suspicious Activity and White Labeling False Positive

Reasons To Conduct Business Verification and Due Diligence

There are various reasons why business due diligence is conducted before onboarding. Some of them are mentioned below.

  • To audit the information provided during the deal or partnership
  • To identify red flags or defects and avoid a bad business transaction
  • To stay compliant with the regulations and guidelines and ensure the business/third-party is compliant with the same
  • To examine historical financial statements and current financial standing with future projections
  • To determine the current capital expenditures, outstanding debts, and investments
  • To get detailed background on the legal issues, pending, threatened, or settled litigation
  • To get the present and past directorship details of the company

How do AuthBridge’s AI-powered technologies help with business verification?

Managing end-to-end business onboarding and ensuring KYB compliance is a complex process that is now easier with AuthBridge’s cutting-edge verification solutions. Our solutions are built on AI-backed technologies like biometric identification, image recognition, and liveness detection enabling business identity verification in real-time. OCR ensures automated form filling and converting physical documents into digital. With continuous risk monitoring and key checks for KYB compliance, we empower our clients with the right security metrics and identify red flags before they become problematic.

Our fast, scalable, and integrable solutions help you onboard vendors, distributors, franchisees, and other third parties/businesses digitally with minimum human intervention. Leverage our AI-powered onboarding journeys to eliminate paperwork, reduce operational costs, and stay compliant with the ever-changing regulation.

Key benefits of our business verification solutions

  • Data-driven actionable insights on financials, shareholdings, and legal matters
  • AI-powered streamlined and structured due diligence with quicker TAT
  • Customizable workflows, easy plug-and-play APIs, and comprehensive reporting 
  • Easy benchmarking against peer performance in the industry
  • Access to India’s largest public and proprietary databases

How are AuthBridge’s business verification solutions helping various industries?

  • Know Your Customer/Business (KYC & KYB): With our third-party onboarding and authentication solution, we have optimized various B2C, B2B, and B2B2C onboarding and due diligence processes for our wide range of clients across 30 industries. We have successfully mitigated the informational, reputational, and regulatory risks with our 117+ checks and proprietary databases.
  • Know Your Risk: We work closely with our clients to reduce risk exposure and improve their high-risk processes. Our solutions like TruthScreen and CorpVeda have helped our clients manage end-to-end risk assessment and meet compliance with all regulations. You can stay assured of faster go-to-market, reduced onboarding costs, and in-depth analysis to enable risk assessment and onboard trustworthy investors and business partners. Our solutions leverage the power of AI and deep search algorithms that scan large volumes of data in no time.

AuthBridge is India’s largest background verification company. If you are interested in end-to-end verification and onboarding solutions for your business, share your contact details below.