SmartSearch launches business checks in response to new AML legislation on beneficial ownership reporting

In response to new AML rules, passed by Congress in January, leading anti-money laundering firm SmartSearch has launched a new business checks service, enabling customers to run full AML checks on corporate clients as well as individuals.

On January 1, 2021, Congress passed the National Defense Authorization Act for Fiscal Year 2021 which included the Anti-Money Laundering Act of 2020 (AMLA) - the most significant reforms to US Anti-Money Laundering (AML) laws in almost two decades.

The Act aims to better combat money laundering and terrorist financing by tightening rules and expanding the Financial Crimes Enforcement Network’s (FinCEN) regulatory power.

Key changes include a new whistle-blower regime and the creation of two new offenses around knowingly concealing, falsifying, or misrepresenting ownership and sources of funds. But probably the most significant is the requirement that ‘reporting companies’ must now disclose beneficial ownership information and financial institutions need a more reliable corporate compliance program in place to ensure they know exactly who they are dealing with.

SmartSearch was already providing the most reliable and robust individual KYC and AML checks on the market to identify, verify and screen customers at onboarding. Now, SmartSearch can offer the same high level of compliance for corporate customers too through its business checks service.

To check a corporate customer, all clients need is to simply enter the business name and zip code into the system. SmartSearch is then able to confirm the existence of the business and validate its corporate structure. The check will also list executives and stakeholders - and automatically provide OFAC and Global sanction, PEP, RCA and SIP updates on the company and any chosen executives.

If there are any matches found with OFAC and Global sanction lists, SmartSearch will automatically run and report enhanced due diligence and detailed profile information. Like with the individual checks, all business searches are automatically hosted on the system and monitored daily, while the email-alert system warns of any change in status that could be a risk to the business.

Not only do these new business checks ensure you know exactly who you are working with, whether that is an individual customer or corporate client from the US or abroad, but also ensure your business complies with the latest AML rules, which require the identification of ultimate beneficial owners.

Chad Rawlings, national sales director at SmartSearch U.S. said:

“Following the latest amends to US AML rules, it has never been more important to have a reliable and secure Know Your Business solution in place as part of your overall Customer Identification Program. However, verifying corporate customers can take a huge amount of time and resource, usually because of the lack of information publicly available.

“And that is why we have launched our business checks solution.

“We already offer an all-in-one CIP solution, and we are now also able to offer identification and verification of corporates and their ultimate beneficial owners.

“Every check you run using Smart Search is automatically hosted on the system and monitored every night ensuring watertight record keeping. What’s more, SmartSearch integrates with existing customer data systems, meaning customer onboarding has never been easier, quicker or more secure.”

Since the pandemic, there has been an increase in all types of fraud and financial crime, with a huge influx of fake businesses being created - many claiming to offer services related to Covid-19 - looking to take advantage of consumers and the US financial system when they are at their most vulnerable.

Chad continues:

“All you need to start a business in the US is an Employee Identification Number (EIN), and a US mailing address, so it is easy to create a fake business. That is why it has never been more important to have robust checks in place, and that is exactly what our new solution does. By cross-checking the details provided with multiple data sources, we are able to verify businesses with a very high degree of certainty.”