A regtech company based in Lithuania, iDenfy, has recently introduced a new feature to its Know Your Business (KYB) platform. This tool is designed to enhance the Secretary of State (SOS) business search capabilities.
Enhancing Business Verification Across the US
iDenfy’s new SOS business search tool aims to streamline the process for businesses, especially those in high-risk sectors like fintech and banking. By leveraging official Secretary of State records from all 50 U.S. states, iDenfy hopes to facilitate instant verification and connection of company information.
The Secretary of State holds critical business registration data, including the legal standing, current status (active or inactive), and compliance with required filings. Neglecting this step can result in businesses inadvertently partnering with shell companies or entities involved in financial misdeeds.
Simplifying Access to SOS Filings
iDenfy’s solution automates the process of accessing these records, significantly reducing the complexity and time required for manual checks. Traditionally, analysts would have to manually search through various state databases, a task that can be fraught with difficulties if businesses are registered in one state but operate in another.
The new tool streamlines this process by directly linking to all U.S. Secretary of State office portals and efficiently extracting necessary information about the targeted company. This is particularly valuable for B2B partnerships and ensuring compliance with KYB standards.
Identifying Potential Risks
With iDenfy’s SOS tool, businesses can identify potential risks such as inactive entities, missing or inconsistent registration data, and past bankruptcies. Early awareness of these risks helps prevent reputational damage or regulatory penalties.
After gathering legal data from the SOS database, the system cross-references it against other KYB criteria like sanctions lists, adverse media reports, and tax ID verification through IRS records. This thorough approach is particularly beneficial for high-risk industries such as cryptocurrency, helping to mitigate the risk of engaging with unscrupulous entities.