Melissa’s Data Tools Power ‘Know Your Business’ Strategies for Compliance and Accurate Risk Profiles
- 20.09.2023 02:00 pm
Melissa, a leading provider of global data quality, identity verification, and address management solutions, today announced availability of data tools that power Know Your Business (KYB) processes. By gathering and verifying information about business customers, KYB efforts mitigate financial risks and ensure compliance with regulatory frameworks such as anti-money laundering (AML) and counter-terrorism financing (CTF).
Complementing Know Your Customer (KYC) operations designed to identify individuals and their associated levels of risk, KYB strategies enable financial institutions to assess legitimacy and credibility of business customers in real time. By accessing multiple data streams containing billions of up-to-date global contact records, financial institutions verify and validate their business customers, comply with global sanctions, and determine whether a new or existing client is partnered with or managed by bad actors.
“Diverse online financial services are convenient but come with increased risk. Fake shell companies? Corrupt organisational structures? Yes, these entities represent real risk for financial organisations working with new and existing commercial clients,” said Bud Walker, vice president, enterprise sales and strategy, Melissa. “KYB checks can help stop corporate fraud while also working to protect an organisation’s reputation by preventing financial crime, such as money laundering and terror financing. It’s vital insight available in real time, removing real threats to business operations by identifying fraud risks early and repeatedly. KYB is just as crucial to improving the customer experience, enabling efficient operations featuring personalised communications and services.”
A priority in the financial sector, KYB also applies to markets such as non-profit, insurance, or healthcare – anywhere employees in senior-level roles, prospective clients, or business partners may pose risk to operations or reputation. Flexibly supporting these needs, Melissa offers a secure and customisable platform to perform the electronic ID verification (eIDV) used in both KYC and KYB operations. KYB cross-checks a company’s name, address and country-specific ID, business registration number and date, operational status, and company type such as corporation, limited liability company, and more.
Melissa’s scalable KYB tools access trusted global data streams, such as credit bureaus, government agencies, and utility records, pairing data with recognised business registries or global regulators. The company’s optimised KYB platform also streamlines access to data on global sanctions and politically exposed persons (PEP). Watchlist screening is consolidated, verifying players against such lists as PEP and SDN (Specially Designated Nationals and Blocked Persons). Banks are empowered to easily access data from OFAC (the Office of Foreign Assets Controls), the global economic sanctions entity working to combat the funding of narcotics and terrorism, along with similar sanctions administration entities worldwide. Melissa’s automated adverse media screening is a valuable addition to standard KYB processes, checking for negative news related to an individual or business even if they may not appear on any international watchlist.