Business verification is divided into several parts:

• Auto KYB checks. Include the Corporate AML Screening and Automated Corporate Registry Check. They are performed to collect information about both companies and their beneficiaries, screen them for sanctions, adverse media mentions, watchlists presence, and other databases. There is an option to conduct only the Corporate AML Screening as part of the Auto KYB verification.
• Full KYB checks. Customizable and complete verification processes for legal entities. The Full KYB includes the Auto KYB checks along with the Ownership and Management Structure Check . They are performed to determine the full company structure, percentages of ownership, and verify all beneficiaries using KYC checks.

Corporate AML screening check

Corporate AML screening is the watchlist screening for legal entities. A company is screened for sanctioned and compromised persons upon onboarding and on an ongoing bases.

There are two options from which you can choose when setting up a database for screening:

• Comply advantage
• Refinitiv World-check one

To request the detailed list of sources for each database, contact your customer success manager.

Automated corporate registry check

Automated Corporate Registry is an additional business check verifying (collecting) information about the company and its beneficiaries through the global and local registries. The check is performed during onboarding and can be run manually to keep information up-to-date.

As for the database source, Sumsub extracts data from some global and local registries. To request the detailed list, contact your customer success manager.

Ownership and management structure check

The Ownership and Management Structure Check includes establishing the company structure, approving ownership, and verifying the identity of UBOs, Shareholders, Representatives, and Directors.

The check is divided into the Basic and Advanced types depending on the documents provided for verification of a legal entity.

Basic ownership and management structure check

The Basic check is a main service for the manual check of a legal entity's corporate documents. It includes the following document types available for processing:

• Shareholder registry
• Incorporation certificate
• State registry
• Incorporation articles
• Proof of address
• Directors registry Information

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Information

If there is another legal entity in a company's ownership structure to verify, you will be additionally charged for the main service cost (Ownership and Management Structure).

Advanced ownership and management structure check

The Advanced check type is a service for the manual check of a legal entity's corporate documents package, which includes any additional document type (Trust agreement, Good standing certificate, and Others).

Companies and associated individuals status synchronization

There is a status synchronization logic within Business Verification that moves a company to a certain status and ensures consistency of the company data according to the linked company, beneficiaries, and representatives:

• The verified company can only be approved if the entire Control and Ownership structure has been approved. Until then, it remains in the Requires action status with the Not all checks succeeded tag. Once all the associated individuals are approved, the main company applicant will get the corresponding status.
• If any of the intermediate entities or individuals in the Control and Ownership structure get final rejection, the main company will be rejected automatically with the Problematic company structure tag.
• If any of the intermediate entities or individuals in the Control and Ownership structure get new AML hits during ongoing monitoring and obtain the Requires action status, the main company will receive the same status with the Not all the beneficiaries verified tag.

Once the company is approved, any changes in the company structure (linking, unlinking, or deactivating associated individuals and intermediate entities) do not impact the status of the main company. Similarly, deactivating the company does not affect the status of its beneficiaries; their KYC accounts will remain in the same status and can be reused for further applications.

Document requirements

A set of required documents for a particular jurisdiction is stipulated by the anti-money laundering laws that are applicable in that jurisdiction.

Normally, Sumsub obtains and verifies the following legal entity documents:

• A document confirming the legal existence of the company, such as:

  • Certificate of incorporation/registration.
  • Recent excerpt from a state company registry.
  • Certificate of incumbency.
  • Certificate of good standing.
  • Memorandum/articles of incorporation/association/registration.
  • Other similar documents.

• A document enabling the identification of all the UBOs of a company, such as:

  • Shareholder registry.
  • Statement of information.
  • Recent excerpt from a state company registry.
  • Certificate of incumbency.
  • Memorandum/articles of incorporation/association/registration.
  • Trust agreement; other similar documents.

The provided documents must, in any event, contain the company name, registration number, legal form (type), address, and the date of incorporation.

If the entity has several corporate layers, that is, intermediary holding companies, the relevant documents should be provided in respect of each company.

Jurisdictional specifics

• For US-based companies, the registration number is the EIN (Employer Identification Number). If you do not have an EIN, provide evidence that you have applied for the EIN.
• For Australia-based companies, both the legal address and the principal place of business address are required; the registration number is either ACN or ARBN.
• For Austria-based companies, full names of the legal representatives are required.
• For Cyprus-based companies, the following additional information is required: names of the members of the Board of Directors; names of the persons that are duly authorized to act on behalf of the company.
• For Estonia-based companies, the names of the directors, members of the management board, other bodies replacing the management board, are required.
• For Finland-based companies, the following additional information is required: field of activity, full name, date of birth and citizenship of members of the statutory bodies and the person(s) representing the legal entity.
• For Germany-based companies, names of the members of its representative body or of its legal representative board are required.
• For Ireland-based companies, the following additional information is required: both the legal address and the principal place of business address, a document iterating the nature of the business, and the names of the company’s directors.
• For Latvia-based companies, names of the persons authorized to represent the company are required.
• For Malta-based companies, names of the company’s directors (or members of another representative body) are required.
• For Mexico-based companies, the following additional information is required: a document iterating the economic activity or social activity of a business; Code of Taxpayer Registration (“RFC”); the serial number of the Advanced Electronic Signature; full names of the company’s legal representatives.
• For Singapore-based companies, names of the company’s directors or partners are required.
• For Sweden-based companies, names of the persons authorized to represent the company are required.

Legal processing

Sumsub Legal Team takes part in the business verification to ensure the safety, speed up the process on all levels, and make decisions on the check results.

The team may be involved in performing the company checks in the following way:

1. Getting requirements for a company verification.
2. Performing the corporate registry check — extracting and collecting data.
3. Checking for the signs of fraud on provided documents — the documents undergo automated checks for modifications in graphic editors and all sorts of similar tampering.
4. Comparing information about shareholders and representatives in documents and registries.
5. Comparing the provided company data in the applicant profile, corporate documents, and registries.
6. Performing a corporate AML screening check.
7. Making sure that all individuals have passed user verification.
8. Making a final decision on an applicant or delegating it to your team.
9. Drawing a company report.