SmartSearch has announced the launch of a new business-owner verification solution in a bid to counter a spike in scams involving fake businesses.

The anti-money laundering (AML) and ID verification firm has expanded the number of countries where it can carry out a Know Your Business (KYB) check to 165, and revealed it is targeting regulated firms in the legal, banking and financial services sectors with its enhanced service.

Under the 5th EU Anti-Money Laundering Directive, KYB regulation requires firms to have an understanding of the ownership of any business they are entering into a commercial relationship with.

In 2020, however, SmartSearch has reported a “dramatic increase” in the number of fake businesses being created by organised crime gangs in order to commit fraud, and with little ID verification required to create a business, the firm suggested there 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, the firm said.

SmartSearch CEO, John Dobson, commented: “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 FCA.

“The expansion of our global database will cement our position as the most comprehensive AML and ID check system on the market. We partner with the world’s best data suppliers to provide a ‘one-stop-shop’ for AML 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.”

Share Story: