Reducing Risk, Enhancing Clarity — Through Due Diligence
In today’s regulatory and risk-sensitive business environment, organizations must conduct thorough due diligence on all parties they engage with — individuals, companies, vendors, and partners. The Know Your Customer (KYC), Know Your Business (KYB), Know Your Vendor (KYV), and Know Your Partner (KYP) processes form the foundation of a robust compliance and risk management strategy.
Due Diligence Services Include:
KYC (Know Your Customer)
KYC is the process of verifying the identity of individual customers to prevent fraud, money laundering,
and financial crime. It involves collecting and validating personal information such as identification documents,
proof of address, and source of funds. KYC ensures compliance with regulatory requirements and
builds trust with clients.
Objectives:
→ Verify the identity and authenticity of clients.
→ Assess customer risk profiles.
→ Ensure compliance with AML (Anti-Money Laundering) and CFT (Countering the Financing of Terrorism) regulations.
→ Promote transparency and trust in financial and commercial transactions.
Key Steps:
→ Customer Identification: Collect and verify personal information such as full name, date of birth, address, and government-issued ID.
→ Customer Due Diligence (CDD): Assess risk levels based on the customer’s background, occupation, and transaction patterns.
→ Enhanced Due Diligence (EDD): Apply deeper checks for high-risk customers, politically exposed persons (PEPs), or unusual transaction activity.
Verification Checks:
→ Identity Verification - Passport, Driver’s License, Government-Issued ID Card
→ Address Verification - Through Physical/Digital Address Verification.
→ Global Database - Sanctions and Watchlist Checks (PEP - Politically Exposed Person, Sanctions, OFAC, AML Databases, Adverse Media, Government Watchlists).
→ Financial Verification - Credit History Check.
KYB (Know Your Business)
KYB focuses on verifying the legitimacy of businesses and corporate entities. It includes reviewing business
registration documents, ownership structures, UBO (Ultimate Beneficial Owner) information, and regulatory compliance.
KYB helps organizations confirm that they are engaging with lawful and transparent entities.
Objectives:
→ Confirm the legal existence of the business.
→ Identify Ultimate Beneficial Owners (UBOs).
→ Detect fake companies or fraudulent entities.
→ Maintain compliance with local and international AML/CFT laws.
Key Steps:
→ Business Verification: Validate registration details, business licenses, and incorporation certificates.
→ Ownership Analysis: Identify shareholders, directors, and UBOs to understand control structures.
→ Financial and Legal Review: Examine financial standing, tax compliance, and litigation history.
→ Sanctions and Watchlist Screening: Check entities and UBOs against global sanctions lists and politically exposed persons databases.
Verification Checks:
→ Business Identity Verification - Company name and registration number, Date of incorporation, Registered business address, Business type.
→ Ownership and UBO (Ultimate Beneficial Owner) Verification - KYC checks on each beneficial owner or director.
→ Business Address Verification - Through Physical/Digital Address Verification.
→ Global Database - Sanctions and Watchlist Checks (PEP - Politically Exposed Person, Sanctions, OFAC, AML Databases, Adverse Media, Government Watchlists).
→ Financial Verification - Credit History Check of Entity & each beneficial owner or director.
KYV (Know Your Vendor)
KYV involves assessing and validating third-party vendors or suppliers before and during partnerships.
It includes reviewing financial stability, reputation, data protection practices, and compliance with relevant laws.
KYV minimizes risks associated with outsourcing, fraud, and supply chain disruptions.
Objectives:
→ Ensure vendors operate legally and ethically.
→ Evaluate financial health and reliability.
→ Confirm compliance with data protection, labor, and anti-corruption laws.
→ Protect the organization’s reputation and supply chain integrity.
Key Steps:
→ Vendor Identification: Collect legal, financial, and operational information from potential vendors.
→ Risk Assessment: Evaluate the vendor’s risk profile based on geography, industry, and services offered.
→ Compliance Review: Check for sanctions, certifications, and adherence to regulatory standards.
Verification Checks:
→ Vendor Identity Verification - Legal business name and registration number, Business type and ownership structure, Registered address and contact details.
→ Ownership & Management Verification - Conduct KYC checks on key individuals, Screen individuals against sanctions and watchlists.
→ Business Address Verification - Through Physical/Digital Address Verification.
→ Global Database - Sanctions and Watchlist Checks (PEP - Politically Exposed Person, Sanctions, OFAC, AML Databases, Adverse Media, Government Watchlists).
→ Financial Stability & Creditworthiness Check - Credit History Check of Entity & Key individuals
KYP (Know Your Partner)
KYP ensures that strategic partners, investors, or affiliates are credible and compliant.
This process includes background checks, legal and financial due diligence, and alignment of ethical
and operational standards. KYP helps maintain integrity and reduce exposure to reputational or regulatory risks.
Objectives:
→ Verify the legitimacy and credibility of partners.
→ Ensure alignment with organizational ethics and compliance standards.
→ Prevent association with high-risk or non-compliant partners.
→ Strengthen strategic and financial collaboration through transparency.
Key Steps:
→ Partner Profiling: Gather detailed information about the partner’s business, ownership, and leadership.
→ Due Diligence: Conduct legal, financial, and reputational checks.
→ Compliance Evaluation: Ensure partners adhere to AML, anti-bribery, and data protection regulations.
Verification Checks:
→ Partner Identity Verification - Legal name of the partner organization/individual, Business registration or incorporation details, Registered address and contact information.
→ Ownership & Management Verification - List of directors, shareholders, and beneficial owners, KYC checks on each beneficial owner or directors.
→ Business Address Verification - Through Physical/Digital Address Verification.
→ Global Database - Sanctions and Watchlist Checks (PEP - Politically Exposed Person, Sanctions, OFAC, AML Databases, Adverse Media, Government Watchlists).
→ Financial Health & Creditworthiness Check - Credit History Check of Entity & beneficial owner, shareholders or directors.