Know Your Counterpart For Your Business – How It Benefits?
Identify your partners and avoid penalties.
The term “KYC” or Know Your Customer is a classic practice implement in the banks & financial institutions to prevent any wrongdoing, particularly events like money laundering. Different countries have made it mandatory for financial organizations, which also goes under further scrutiny for identifying any mistake.
Granted a status, a partner may indulge in several kinds of clandestine deals that may invite rigorous penalties from the regulatory authorities. Therefore, business organizations must implement Know Your Counterpart and avoid flouting the trade compliance regulations. This kind of KYC moves beyond general KYC information like NAP. Details of intermediate consignees, end-users, etc. give a solid report about any transaction.
How does it benefit your organization?
Without further ado, you can know who is your customer and what they do. This implementation may bring a whole lot of positive results for your business. Let’s point out a few key takeaways for you.
Identify a person who’s in the list of banned entities or red-flagged for some reason.
Learn about the products that may or may not require an export license
Add, delete, or red-flag entities
As a business, you can subscribe to denied party screening software and avail a myriad of facilities through KYC & trade compliance measures. Apart from pursuing a safe & positive approach while dealing with trade partners, you can reduce unnecessary time being spent on researching for articles/rules/laws regarding a deal. Direct access to updated information via the software helps you keep your focus on the core business.