What is KYB and how can it protect your business?

Find out what it is Know Your Business (KYB) and how it benefits you when doing business.

In 2018, the German pharmaceutical giant Bayer purchased the American agrochemical company Monsanto for over $63 billion. Although it seemed like a great deal, Bayer is now experiencing serious financial problems after having to face the multi-million dollar lawsuits and the bad reputation that Monsanto has left behind.

Risks don't just exist when two large companies join forces to create a partnership or do business; every time a company, large or small, makes deals with a new partner, supplier, or other company, You should make sure that you are dealing with trustworthy entities and that this business relationship will bring you benefits and not problems.

What is KYB?

A Google search for the company we're going to do business with is usually the first step in finding out something about its reputation; however, even though there is a lot of information online, it's never enough to know if we can actually have a business relationship with it. Just as banks and other financial institutions have protocols for Know Your Customer (KYC) To prevent money laundering or other illicit activities with their clients and users, companies in all sectors implement processes to know other companies or suppliers with whom they want to work, these processes are called Know Your Business (KYB).

KYB involves researching the background and reputation of the company we are dealing with, but it also focuses on the people who lead the company, such as its legal representatives or shareholders. One of the purposes of KYB policies is to work closely with governments to prevent companies from being used for money laundering and that they finance organized crime activities; but they also function as a strategy to avoid doing business with shell companies or fictitious corporations.

KYB in Mexico

While regulations in this area in Mexico are not yet as specialized as in Europe and the United States, Mexican legislation also includes measures to validate the identity of companies with which business is sought, thus preventing illicit activities such as fraud.

Until recently, Mexican companies were reluctant to implement processes of Know Your Business (KYB) Due to the human and material resources involved, it took weeks to manually review the documents, and it was difficult to determine whether the data submitted by other companies had been falsified or altered. Fortunately, today, there are solutions that make the process fast, secure, and much less costly.

KYB in the era of digital transformation

The introduction of digital technologies into identity validation processes and the use of artificial intelligence has revolutionized the way KYB policies can be implemented. Due to the increase in remote business operations and globalization, Today more than ever it is necessary to make technology an ally when doing business..

You no longer have to wait weeks to find out if a potential partner is trustworthy.Automated processes ensure that formerly time-consuming and costly work is completed in a matter of seconds. Today's technology allows you to save resources and ensure that your potential partners are trustworthy and will help you grow your business.

Your Identity as a solution

We understand the challenges you face when doing business with new partners. Our regulatory experts can advise you on how to implement quickly and easily. the KYB processes that best suit your needs.

Your Identity has several modules that will allow you to save time and money as well as protect your company, such as background check on blacklists where you can find out if any company or its representative has been involved in any illegal activity around the world, implement the use of the digital signature which guarantees the unalterability of a document, as well as the evidence that validates the identity of any person.

Carrying out KYB processes not only prevents you from doing business with shell companies or untrustworthy partners, but also helps you create a digital file that allows you to optimally manage any company's documents and mitigate any crime related to identity theft.

If you want to know more about our services, do not hesitate to contact us. contact us and schedule an appointment.