Know Who You Are Doing Business With:A Global Effort To End Financial Crime

by Mohit J. White Hat Link Building Services

To protect our financial institutions, business world, and economy — a global effort must be put in place to stop financial crimes.

It is vital to know who you are actually doing business with, at all times.

Each country has their own rules and standards to follow to determine if a person or business is legitimate. These standards are typically part of Know Your Business (KYB) and Know Your Customer (KYC).

It can be hard to follow Know Your Customer procedures in China, due to the level of privacy traditionally expected for each person — especially the wealthy.

Find out the China KYC and China KYB procedures, so you know what to expect when doing business there.

What is KYB? 

Know Your Business (KYB) is a set of procedures that determine if a business is legitimate.

China has new measures in place that are improved from the previous ones.

These new measures include acquiring a company’s:Name

• Registered address
• Incorporation documents
• And business license

China KYB is mostly utilized by financial firms and still under improvement.

Measures have been updated to include customer due diligence investigations.

These measures are usually taken when a company first gets established and continues as they develop and maintain a relationship with their financial institute. It looks at the company’s customer base, business relationships and transactions.

There are measures in place to reevaluate based on transactions above certain thresholds.

What is KYC?

KYC stands for Know Your Customer. Much like KYB, it is a set of procedures to determine identification — identification of an individual customer.

Know Your Customer establishes the nature of customer activities, their true identity, and assesses the risk of that person being involved in criminal activities.

In China, KYC procedures are similar to other places.

When being assessed for KYC, be prepared to verify:

• Identification — this includes name, gender, and nationality
• Your address
• Phone number
• And your occupation

Banks are allowed to stop doing business with an individual if they do not stay up-to-date with their identifying documentation and the China KYC procedures.

How does this help?

Due to the rise of criminal activity, including money laundering and tax evasion, knowing who you are dealing with is vital.

If money laundering and other financial crimes are allowed, there can be severe consequences, including inflation and economic failure or distress.

By following KYB and KYC procedures, we’re able to verify that a person or business is legitimate. This makes it harder for a criminal to take advantage.

Keeping track of the activities that a business or individual is doing can catch criminals in the act — hopefully ending financial crime.

The global economy is at risk if no action is taken to prevent these financial crimes and scams.

China KYC and China KYB are improving within the financial service firms to stop criminal activity.

Any business can go online to check the legitimacy of an individual.

Though mostly used by financial institutes, Know Your Customer and Know Your Business are vital to the financial safety of all.

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Created on Nov 4th 2022 03:03. Viewed 98 times.

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