🔹 Definition
Company Verification is the process of confirming that a legal entity—such as a corporation, limited liability company, or partnership—is properly registered, active, and legally entitled to operate in its jurisdiction. It is a foundational step in Know Your Business (KYB), Customer Due Diligence (CDD), and Anti-Money Laundering (AML) compliance workflows.
Verification involves retrieving and validating official information such as the company’s registration status, legal name, incorporation number, business address, ownership structure, and key personnel from trusted sources like government registries or corporate databases.
🔹 Frequently Asked Questions (FAQs)
Q1: What documents or data points are used to verify a company?
Typical elements include:
- Certificate of Incorporation
- Business Profile or company extract from an official registry (e.g., ACRA, Companies House)
- Unique Entity Number (UEN) or equivalent identifier
- Registered business address
- Names of directors, shareholders, and Beneficial Owners (UBOs)
Q2: Why is company verification important?
- Prevents onboarding of fake, inactive, or shell companies
- Supports risk-based assessments for AML/CFT compliance
- Ensures business legitimacy before establishing financial or commercial relationships
- Helps detect signs of fraud, front companies, or politically exposed structures
Q3: How is company verification performed?
- Manual retrieval of official documents from government websites
- Use of third-party KYB or RegTech platforms that automate registry lookups
- Cross-checking details with sanctions, watchlists, or adverse media databases
- Ongoing monitoring for status changes, such as struck-off or dissolved entities
Q4: Is company verification required for all clients?
Yes—for all corporate or institutional clients under KYB obligations. Regulatory bodies in most jurisdictions require financial institutions, fintech firms, and corporate service providers to verify the legal and operational status of client entities before providing services.
