Ensuring Compliance Through Detailed Business Verification
Introduction
Know Your Business (KYB) verification is a critical part of ensuring regulatory compliance and mitigating risk. This process begins after collecting key information from the business entity, including the Tax Identification Number (TIN), company name, and business address. For guidance on adding a new business application, refer to the article 'How to Manually Add a Business'.
- Business Name and Tax ID Verification:
- Existence Check:: The submitted company name and TIN are cross-referenced against federal and state business registries to confirm that the business exists and is legally registered.
- Fuzzy Matching: To improve matching accuracy, fuzzy matching techniques are used. These account for:
- Minor spelling differences
- Abbreviations or alternate formatting
- Common typographical errors
- Verification Outcome: The business is considered verified when:
- The TIN and company name match registry records, and
- The registration is active with the relevant state authority
- Additional Details from Secretary of State (SOS):
- Legal Entity Name: The business’s official registered legal name is verified.
- Registration Date: The official date the business was registered is provided.
- Entity Type: The classification of the business entity (e.g., LLC, Corporation) is verified.
- State of Registration: Confirms the U.S. state where the business is officially registered.
- Corporate Officers: Lists key individuals associated with the business, providing details of its corporate leadership.
- Active Status: Confirms whether the business is currently active or inactive, indicating its operational standing.
- Articles of Incorporation
- Address Verification:
- Known Address Verification: Confirms that the business address is valid and operational by cross-checking it against public and proprietary databases.
Compliance and Security
The KYB verification process follows strict regulatory standards and industry-leading security protocols to safeguard sensitive data and prevent fraud. Ongoing updates and audits are performed to continually improve the process and ensure compliance with evolving legal and regulatory requirements.
Conclusion
A robust KYB process is foundational to secure, compliant operations. By validating business identity, registration status, leadership, and location, Worth strengthens trust, reduces risk, and upholds its commitment to regulatory excellence.