«18» January 2024г.
KYB is part of the AiFory LLC Anti-Money Laundering (AML) programs to comply with applicable AML/KYC regulations.
Know Your Business (KYB) is specifically centered around performing due diligence on a business we seek to onboard as our client.
By verifying the identity and authenticity of businesses and organizations, during the KYB process, we cross-check company details against our specific KYB rules. AiFory LLC seeks to prevent illegal activities from occurring.
The goal of KYB is identity verification, fraud prevention and money laundering prevention.
Every applicant goes through the KYB procedure as the following:
The applicant uploads company and beneficiary data.
AiFory LLC performs document verification, ownership and control structure verification, registry checks, AML screening, as well as automatic KYC checks of beneficiaries.
AiFory LLC legal team reviews the check results.
Every applicant receives an informative report at the end of the KYB procedure.
KYB procedures collecting and analyzing a range of data and information.
The main components of KYB procedure are the following:
Verifying the business’s identity.
It involves validating the legality and legitimacy of business activities of a business entity by examining its business registration status or other licensing documentation. This step helps confirm that we are dealing with a legitimate, legally recognized business and not a fraudulent entity.
At this stage the following information shall be checked:
Name - The business’s registered, legal name.
Address - The business’s operating address or addresses. A business’s operating address may be different from its registered address.
Taxpayer identification number (TIN) - For US-based businesses, this is generally an Employer Identification Number (EIN). An EIN is a unique number that a business uses to open a bank account, file taxes, and otherwise verify its unique identity.
Business registration status all businesses are required to submit Certificate of Incorporation
Licensing documentation - Operating License (if applicable) some businesses are required to be licensed to perform their business function. Not all businesses are required to be licensed.
Identities of directors and owners
Documentation verifying;
Identifying and Verifying the business’s Ultimate Beneficial Ownership (UBO) of a company;
Transaction monitoring: Certain transactional behaviors may indicate that a business is involved in money laundering or terrorist financing activity. Unusual frequencies or volumes of transactions, transactions just under-reporting thresholds, or transactions with high-risk countries often represent money laundering red flags.
Sanctions screening: screen businesses and their employees against international sanctions lists such as the OFAC sanctions list, the UN sanctions list, and the EU sanctions list.
PEP screening: Businesses that are exposed to political corruption may present an increased level of money laundering risk. Accordingly, we screen businesses to establish their politically exposed person (PEP) status.
Adverse media monitoring: monitor businesses for their involvement in adverse or negative news media stories that might indicate their involvement in criminal activity. The monitoring process should be ongoing and include traditional screen and print media and online sources.
Onboarding During the onboarding business, KYB checks serve as a critical first line of defense against fraudulent associations. After initial business registration and verification, detailed KYB checks are performed. These checks include verifying the onboarding business customers’ physical addresses, official phone numbers, and sources of funds.
The collected information is then cross-referenced for validation. Based on this verified data, a risk assessment is conducted to gauge the potential risk associated with the prospective business partner. The entire business onboarding process becomes a crucial phase where rigorous KYB checks are pivotal.
The final step in the KYC process is to monitor the customer's account for suspicious activity. This may include monitoring transactions for unusual patterns, such as large or frequent transactions, or transactions that are inconsistent with the customer's profile.
Our KYB procedure ensures that the AiFory LLC does not do business with companies involved in:
- Money laundering
- Financing terrorism
- Tax crimes
- Sanctions lists
- Fraud and other financial crimes
If you have any questions, please contact us at the following contacts
[email protected]