Verification is a critical step in the Know Your Customer (KYC) process that follows identification. After collecting comprehensive data from counterparties to understand who they are doing business with, companies must verify the accuracy and legitimacy of this information. This step ensures that the counterparty's details are correct and that they meet regulatory and risk management criteria.

‍

The verification process involves confirming the collected information, such as the legal name, registered address, date of incorporation, registration number and corporate structure / ownership structure. This confirmation is typically done through reliable and independent sources, such as government databases, third-party verification services or official documents like certificates of incorporation, business licenses and identification records.

‍

Verification helps in assessing the legitimacy of the counterparty, ensuring that there are no discrepancies or false information that could indicate potential fraud, money laundering or other financial crimes.