Buying a Business & know-your-Customer (KYC)
When it comes to buying businesses in Singapore, you will have to take necessary measures to avoid fraud and comply with local regulations. For instance, all businesses are required to conduct Due Diligence prior to sale.
Buying a business can be a very lucrative business opportunity. Some have lost their hard-earned money buying businesses that involve scammers or insiders within a business or through their customers. Before you go into the acquisition of any business, you should always know what the business is in the first place and the kind of customers they have. This is why Know-Your-Customer (KYC) due diligence is important.
By performing preliminary due diligence, you will need to know about their background and make sure that they are bona fide. Preliminary due diligence is the process of collecting sufficient information to build a complete picture of the business. This allows you to confirm the identity of the business owner and to prevent any fraudulent or illegal business transactions. After the KYC services, you are in a better position to make an informed decision about the business and its financial worth.
In case you are buying a business or a company, you will be required to prove you are tax-paying as well as that you are a bona fide person. The customer side should be thoroughly investigated as well. You will want to make sure the right contacts are added to your database so that when you need them, they will be available for you.
You also have to acknowledge that buying a business that appears to be successful may not necessarily have a better quality of earnings or financial stability. This applies similarly to retired business owners who are selling their companies. You will need to dig deeper into their records before you consider the purchase.
Buying a business is a business decision, however, it may also include several other matters or factors. So, you need to make sure that you are well-informed before deciding to take on a business venture.
Selling your Business & know-your-customer (KYC)
It is a big mistake to assume that only an investor should perform KYC. Even seller has to perform KYC Due Diligence on their own company and the buyer to ensure that the incoming fund is legal to use. KYC and CDD are crucial aspects of AML compliance. Firms must identify and verify anyone they work with, to ensure they don’t unknowingly become involved with a business or individual with a history of financial crime, or sanctions.
Online KYC Due Diligence verification, Intellinz is quite fast and efficient as opposed to traditional KYC. Therefore, several organizations have begun to incorporate it during mergers and acquisitions of businesses. Also, due to covid-19, physical interactions have become limited. This will only maximize its usage and importance in the near future when all checks are done via an online application. It helps businesses in being compliant with different regulations and minimize loss of value by associating with criminals. Moreover, by implementing it, companies can become protected against online criminal activities.
Buyers have to do a detailed financial analysis of the business to determine the appropriate price to pay. Intellinz, a B2B KYC system allowing data to flow into an AWS server brings better control over the loss of data as compared to traditional Due Diligence. This includes reviewing income and loss statements, balance sheets, key assets, contingent and actual liabilities, and cash flow statements. You may find that it is more cost-effective to start from Intellinz by promoting your business and proceed withKYD Due Diligence in the same platform.
What is KYC Due Diligence?
Every company should know the term “Know-Your-Customer,” otherwise abbreviated as KYC, as well as “Due Diligence.” Both of which are essential concepts in the economic and commercial sectors. Therefore, a clear understanding of both is essential for all companies.
KYC is when businesses gain information and data in order to confirm and verify the identity of client/customers and ensure that they are not or have ever been involved in any type of criminal activity such as money-laundering or any other type of financial crime. By conducting thorough check on the background of the prospective customer, you can be rest assured that your company or organization would not be implicated to third-party risks when closing a deal, onboarding a partner, or investing in other business ventures.
Due diligence is the inquiry or practice of care that a reasonable business or individual is responsible for prior to entering into a contract or agreement with another party. The method by which a prospective acquirer evaluates a target business or its assets for an acquisition is a popular instance of due diligence in different sectors after the start of B2B or B2C relationship. In essence, Due Diligence offers organizations with a continuing insurance system, particularly those conducting big numbers of daily operations such as banks and investment houses to preserve corporate compliance.
KYC Due Diligence
KYC Due Diligence, is the combined strategy specifically intended for dealing with high risk or high value customers and large transactions, as these transactions and clients pose greater risks to the financial sector, they are heavily regulated and monitored in order to adhere to compliance acts set by governing bodies. Many industries are subject to AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorist) compliance, including requirements disseminated by MAS (Monetary Authority of Singapore) applicable to any and all financial institutions in Singapore. Hence, it is imperative that business owners and entrepreneurs of today, to not only be aware of the various risks at hand in the financial sector as well as the overall global economy, but also know the inherent responsibility to conduct regular KYC Due Diligence checks in order to comply to the laws and regulations set to protect businesses. Therefore, we have made an application, Intellinz, for firms owners to search for opportunities, potential partners, buy or sell businesses and investment with our integrated ongoing due diligence screening. This will help to build safe and conducive marketplace for any firms that use our platform.
By closing the gap in KYC due diligence for Small Medium companies, Intellinz solves the pain points of customers who do not have a clue on how to perform Due Diligence and cannot afford full KYC services. Solving the following pain points for many SMEs
Uses of KYC Services
- Client on-boarding.
- User Registration.
- Processing of high-profile transactions.
- Re-verification of existing users.
- Ensure regulatory compliance.
- Replacement of outdated authentication mechanisms.
DUE DILIGENCE SOLVES THE FOLLOWING POINTS:
Buy, Sell & Invest Securely with KYC Due Diligence
- Reducing criminal syndicates infiltrating to companies
- Keeping track of STAKEHOLDERS, important suppliers and before awarding major contracts.
- Looking for verified business opportunities such as franchisees and new product suppliers from overseas.
- Searching for suitable investors and getting an investor for your current business.
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