Performing KYB on a business would usually first require collecting company details and then to carry out sanction/ PEP screening, and you may wish to include adverse media in order to identify potential money laundering vulnerabilities.

You can verify the company details given to your through online checks to confirm the entity is genuine and operating. See here to see more information on company checks.

You will want to determine the corporate structure, identify and potentially screen directors and beneficial owners in order to uncover potential money laundering and terrorist funding risks, such as high risk jurisdictions, sanctioned individuals or state owned entities.

Monitoring will help you keep on top of updates to sanctions list or adverse media events to avoid non-compliance and potential fines.

• Company name
• Registered address
• Registration number
• Director and beneficial owner identities
• Ownership and corporate structure

Enhanced due diligence means performing more in-depth checks than standard due diligence in higher risk situations. Enhanced due diligence may also be beneficial in fighting financial crime and application fraud

Enhanced checks may include adverse media and open source screening, source of funds/ wealth checks and ongoing monitoring/ regular re-screening.

• Higher risk situations and transactions may include:
• Those in high risk jurisdictions, due to weaker AML controls
• State owned entities, PEPs and RCA’s
• Unusual or complex transactions and corporate structures.

• Transactions and business relationships can be at high risk of money laundering, with a few indicators to suggest this.
• Shell or offshore entities often suggest attempts to conceal a true beneficial owner, particularly in tax havens and jurisdictions without laws and regulations on publishing company and director information.
• Working with unknown beneficial owners can conceal illicit activity, and directly undermines AML framework and compliance. This exposes you to potential regulatory action and fines.
• State owned entities produce higher risks of exposure to illicit activities such as bribery and corruption. The money laundering risk is also increased by higher chances of PEP influence and sanctions.
• Jurisdictions with weak anti money laundering controls have an increased chance of money laundering and terrorist financing and exposure to sanctions. Your association with these can lead to heavy fines, penalties and have knock on business effects.

KYB requires identifying and understanding suppliers, and third party relationships to

• Identify the potential business relationship and any risks that may arise using an AML Risk assessment
• Understand the business services, jurisdictions, directors and beneficial owners, and ensure you have identified the full corporate structure.
• Screening the entity will help you identify potential sanctions or state owned/ politically exposed connections which would increase risk.
• If the risk is deemed high – you may wish to screen against adverse media, and screen individual directors more thoroughly.