Anti-money laundering (AML) and ID verification firm SmartSearch has introduced a solution designed to counteract scams involving fake businesses.
Under the 5th EU Anti-Money Laundering Directive, Know Your Business (KYB) regulation requires firms to have an understanding of the ownership of any business they are entering into a commercial relationship with.
However, with little ID verification required to create a business, SmartSearch says it is a wide-open back door that is being exploited by fraudsters.
The SmartSearch business verification will cross-check the details given with multiple data sources including Companies House, Experian, Equifax and Dow Jones Politically Exposed Persons (PEP) and Sanctions lists, to ensure the most accurate pass rate.
John Dobson (pictured), CEO of SmartSearch said: “Regulated businesses in the UK not only need to be compliant with Know Your Customer (KYC) legislation but also KYB. Otherwise they are seriously exposed to fraud and also to financial penalties from the Financial Conduct Authority (FCA).
“The expansion of our global database will cement our position as the most comprehensive anti-money laundering and ID check system on the market. We partner with the world’s best data suppliers to provide a ‘one-stop-shop’ for anti-money laundering checks which means SmartSearch has the most robust verification for KYB on the market.
“It makes sense to do a SmartSearch as you can validate the identity of a business and its directors in less than three minutes. That means it takes about the same time to do a SmartSearch as it does to make a cup of tea, and it will not only protect your business from fraud, but also ensure you’re compliant with current regulations.
“With SmartSearch solutions available via a web browser or API connections, businesses can be up and running and operational within 24 hours.”