Category: Banking

Back in the days, a handshake used to seal deals. No paperwork, no background checks. Just trust. 

But business has changed.

Today, a company can exist on paper, online, or in name only. It can look legitimate, have clients, even process transactions—without ever being what it claims. That’s not a loophole. It’s just how modern business works.

So, how do you separate what’s real from what’s just well put together?

Canada has laid clear instructions for this. Take aside your 6 minutes to understand everything: what to check, how to confirm, and much more.

Let’s directly get into it.

What is Know Your Business Verification in the Context of Canada?

Know Your Business (KYB) verification in Canada refers to the process of identifying and validating a business entity before engaging in financial transactions or business relationships. 

It is mandated under Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and enforced by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). 

The main idea behind conducting this KYB verification in Canada is to stop fraud, money laundering, and illegal financial moves.

Canada Business Verification Regulations

Canada’s business verification regulations, as outlined by FINTRAC, mandate that reporting entities adhere to specific protocols to prevent financial crimes. 

Here are five key points

1. Mandatory Identity Verification: Reporting entities must verify client identity for transactions: cash ($10K+), virtual currency ($10K+), electronic funds transfers ($1K+), and suspicious transactions (any amount). Applies to banks, securities dealers, casinos, and real estate. 
2. Approved Verification Methods: Entities can verify identity using government-issued photo ID, credit file checks (must be Canadian, active for 3+ years), or dual-process verification (utility bill, tax document, or bank statement from separate sources). 
3. Beneficial Ownership Disclosure: For businesses, entities must collect information on persons owning or controlling 25%+ shares and verify identity using reliable documents like shareholder registers, partnership agreements, or trust deeds.
4. Record-Keeping Obligations: Businesses must keep identity verification records for at least 5 years, including copies of IDs, transaction details, ownership records, and agent verification agreements for FINTRAC audits.
5. Use of Agents for Verification: Third-party agents can verify identities on behalf of reporting entities, but agreements must ensure compliance with FINTRAC rules, and businesses remain responsible for due diligence.

For more, you can refer to the official FINTRAC documentation.

Now, let’s see the document requirements.

Documents Required: What Information to Collect and Verify?

Methods to verify businesses in Canada

Verifying a business in Canada ensures legitimacy, regulatory compliance, and fraud prevention. 

FINTRAC mandates verification based on the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). 

Depending on the business type and risk level, different methods apply. Let’s go through each.

1. Confirmation of Existence Method

The confirmation of existence method is the most straightforward way to verify a business. It requires obtaining official documents that prove the business is legally registered and recognized by a government authority. These documents can include: 

• Certificate of incorporation for corporations
• Partnership agreement for partnerships
• A business license issued by a provincial or federal registry. 

In many cases, verification is done by cross-referencing the provided documents with publicly available business registries or databases, ensuring the business is active and operating as claimed. 

This method is mandatory for most financial and high-risk transactions.

2. Reliance Method

In some cases, a business does not need to be verified from scratch if another trusted reporting entity has already conducted a FINTRAC-compliant verification. This is known as the Reliance Method, which allows one entity to depend on the due diligence work of another. 

For this method to be valid, there must be a written agreement in place that outlines the reliance arrangement and confirms that the initial verification was conducted using approved methods. The entity relying on this verification must still assess the credibility of the original verifier and maintain oversight to ensure compliance with FINTRAC’s regulatory requirements.

3. Simplified Identification Method

Certain businesses are classified as low-risk under FINTRAC’s framework and may be eligible for simplified verification. These typically include government agencies, publicly traded companies listed on recognized stock exchanges, and regulated financial institutions such as banks and securities dealers. 

Instead of collecting extensive documentation, verification can be conducted using publicly available information, such as stock exchange listings, government records, or regulatory filings. 

This method significantly reduces the administrative burden but is only applicable to entities explicitly listed under FINTRAC’s simplified verification rules.

4. Agent or Mandatary Verification Method

Businesses can also be verified through an agent or mandatary who conducts the verification process on behalf of a reporting entity. The agent must follow FINTRAC’s prescribed verification methods, maintain detailed records, and ensure compliance with all regulatory requirements. 

This is often used in cases where businesses operate in different jurisdictions or when third-party professionals, such as lawyers or financial institutions, are better positioned to collect and authenticate the necessary information. 

But note that, even when using an agent, the original reporting entity remains fully responsible for ensuring that the verification meets the required standards, conducting enhanced due diligence when required, and that records are retained for at least five years.

Conducting Business Verifications in Canada at Scale

Some businesses look right on paper but don’t add up in reality. They’re registered, have tax IDs, and check all the basic boxes.

But that doesn’t mean they’re active, legitimate, or low risk. 

Ownership structures can be layered, operations may not match filings, and some entities exist only to move money unnoticed. 

Without a way to verify these details at scale, financial institutions are left piecing together fragmented information, slowing down approvals and exposing themselves to compliance gaps.

That’s where automation changes the game. Instead of relying on manual cross-checks and document collection, you can use Signzy’s UBO Verification APIs to map out ownership structures, identify the real individuals in control, and more, even when businesses are structured to hide them. 

Combined with Signzy’s comprehensive business verification suite, financial institutions can onboard businesses faster, with fewer blind spots and stronger compliance.

Signzy is now available in Canada. 

The Reserve Bank of India is turning 90 on April 1, 2025. It’s more than an anniversary. It’s a moment to pause and look at how far India’s financial system has come, and how quietly the RBI has shaped that progress.

From managing currency in the early years to supporting digital payments today, the RBI has stayed focused on building stability, access, and trust in finance. Its role has changed over the decades, but the intent has remained steady.

At Signzy, we’ve been fortunate to contribute to this journey since the 2010s. Our work has aligned with the RBI’s vision in areas like KYC, compliance, and digital transformation.

This blog is our way of saying thank you. A reflection on how RBI’s approach to regulation has grown over time, especially in the world we know best (digital banking, fintech, and identity).

Let’s start by seeing where it all started. 

Reserve Bank of India’s Origins

On April 1, 1935, when the Reserve Bank of India opened its doors, few would have imagined the journey it would undertake. The RBI was India’s answer to chaotic currency systems (India witnessed over 570 bank failures in the 1940s alone), frequent bank failures, and a lack of centralized monetary control. 

It began as a private entity, regulating currency and acting as banker to the government, but post-independence, it was nationalized in 1949. From that point on, the RBI started shaping India’s economic destiny.

In many ways, RBI is like the infrastructure we don’t see but which never fails. It has walked with India, through wars, reforms, scams, crises, liberalization, pandemics, and digitization. And every time, it has emerged with credibility intact.

RBI’s Timeline of Transformation

The RBI’s journey is filled with moments that quietly changed the way India banks, transacts and trusts the system. Here are 20 key turning points.

1. 1935 – RBI begins operations on April 1 as a private shareholders’ bank, focusing on currency issuance and acting as a banker to the government.
2. 1949 – RBI was nationalized and gained legal authority to supervise and regulate commercial banks under the Banking Regulation Act.
3. 1955 – RBI helps set up the State Bank of India to expand banking services and act as a development arm in rural India.
4. 1961 – Launches Deposit Insurance in the wake of bank failures, protecting small depositors. A first in Asia.
5. 1969 – Executes nationalization of 14 major commercial banks; priority sector lending norms and branch expansion in rural India follow.
6. 1980 – Six more banks are nationalized; RBI deepens focus on inclusive banking and cooperative sector regulation.
7. 1991 – In the wake of a balance of payments crisis, RBI starts deregulating interest rates, launches monetary policy reforms, and liberalizes banking.
8. 1993 – Licenses new private sector banks (e.g., ICICI Bank, HDFC Bank), bringing competition and innovation into mainstream banking.
9. 1997 – Gets power to regulate NBFCs under revised RBI Act, important for managing India’s fast-growing shadow banking space.
10. 2002 – Introduces Real-Time Gross Settlement (RTGS) system, ushering in real-time payments for high-value transactions.
11. 2008 – Responds swiftly to global financial crisis by ensuring liquidity, while maintaining capital buffers and strict NPA recognition norms.
12. 2010 – Launches Base Rate system, replacing benchmark prime lending rate for more transparent pricing of loans.
13. 2016 – Monetary Policy Committee (MPC) established, RBI now sets interest rates through a structured, inflation-targeting framework.
14. 2017 – Formal rollout of UPI gains momentum; RBI supports rapid fintech growth while refining oversight on digital payments.
15. 2018 – Tightens norms for NBFCs and cooperative banks after IL&FS crisis; begins cleanup via PCA and stricter provisioning.
16. 2020 – Allows Video KYC during COVID, accelerating remote onboarding; also launches regulatory sandbox for fintech innovation.
17. 2021 – Rolls out scale-based regulation for NBFCs, classifying them by systemic importance to reduce regulatory arbitrage.
18. 2022 – Releases guidelines for Digital Lending, curbing predatory practices and enforcing direct disbursals and transparency.
19. 2022–23 – Initiates CBDC (Digital Rupee) pilots (wholesale and retail) to explore programmable, sovereign-backed digital currency.
20. 2024 – UPI becomes globally accepted in multiple countries; RBI actively collaborates on cross-border payment frameworks (Project Nexus, etc.).

Achievements Over the Decades

Collaboration with Signzy

It’s not every day that a startup gets to co-create with the central bank of a nation. At Signzy, we consider it a privilege.

We were recognized by RBI through the Payments Systems Innovation Awards in 2016 and 2018. More recently, in 2024, we were awarded a place in the Regulatory Sandbox for Unassisted Video KYC, one of the most forward-looking initiatives in digital onboarding.

In our journey, we’ve contributed to making KYC more accessible. Working with banks and regulators, including under RBI’s guidance, we’ve enabled verification, helped rural banks onboard users with minimal infrastructure, and reduced drop-offs in onboarding with AI-powered ID verification.

Our systems now power parts of the digital onboarding stack for several institutions governed by RBI. 

Signing Off

RBI’s story mirrors India’s story. Full of resilience, reinvention, and quiet conviction.

And for those of us building at the intersection of finance and technology, the RBI is more than just a regulator. 

It’s a reason. 

A reason why India could go from long queues in bank branches to instant bank transfers on mobile phones.

We’re proud to have played a small role in this journey, making digital identity more inclusive, KYC more seamless, and compliance less intimidating.

Here’s to 90 years of the Reserve Bank of India. Thank you for being the invisible force that keeps India’s financial heart beating.

And here’s to the next decade. Where trust will still matter, but so will speed, access, and adaptability. 

We’re building for that future, with you. ♥️

Forget about banks for a second. 

Imagine you’re about to buy a used car from someone. They say it’s in perfect shape, low mileage, one previous owner. Sounds ideal, right? 

But anyone who’s done this before knows you don’t just take their word for it. 

You look up the car’s history, you run the VIN, and you get it checked out by a mechanic if you can. Not because you’re expecting anything to be wrong—just because you’re smart about covering your bases.

Verifying a business bank account in the UAE is like doing that background check on the car. 

Like that car purchase, it’s not about doubting someone’s word. You’re just doing the practical steps to make sure what you’re dealing with is exactly what you think it is. And once you’ve ticked those boxes, you can feel confident you’re on solid ground.

Have 6 minutes? Here’s every step you need to take, from basic document checks to smart digital tools that help you verify bank account ownership with confidence.

Why Verify Bank Accounts in UAE?

The UAE’s position as a global business center brings together companies from different markets, payment systems, and business cultures. This creates an environment where careful verification becomes valuable—not from distrust, but from a practical need to ensure smooth business operations.

Every business faces moments when verifying bank account details becomes particularly valuable:

• During expansion phases when working with multiple new partners
• When setting up payment systems across different emirates
• For businesses managing international transactions
• When handling significant one-time payments

While not mandated by UAE’s regulations, this verification step helps businesses build stronger, more reliable financial relationships.

How Bank Account Verification Works

Bank account verification in the UAE makes perfect business sense – much like double-checking the address before sending an important package. It’s particularly valuable in UAE free zones, where businesses often deal with partners from various regulatory backgrounds. 

What bank account verification actually covers:

For international transfers and recurring payments, these checks, while simple, help avoid common issues like payment rejections or processing delays that can affect business operations.

Ways to Verify Bank Accounts in UAE

Verifying bank accounts in the UAE doesn’t need to feel overwhelming. Each method has its own way of working, and understanding these mechanics helps choose what works best for specific business needs.

While the choice of verification method depends on factors like urgency and relationship type, each approach offers unique advantages. Here’s how each method works in practice:

1. Micro-Deposit Verification

Think of micro-deposits as a handshake between two bank accounts. The process starts with sending a tiny amount – usually just a dirham or two – to the account being verified. The real verification happens when the account holder confirms receiving this amount or shares the specific reference code attached to the transfer. 

Here’s a example scenario of verifying your supplier’s account:

1. You send AED 1 to the supplier’s account
2. The transfer includes a unique reference code: “VER12345”
3. Your supplier receives the amount
4. They email you: the exact amount received (AED 1) and the reference code “VER12345”
5. You confirm these details match your records
6. Verification complete

This verification gives you certainty on what matters most: the account is operational and under the control of your business partner. 

Such nature makes micro-deposits particularly useful when setting up new business relationships or automated payment systems.

2. Checking Official Documents

A bank letter or statement does more than show account details – it creates a verifiable link between the account and its owner. Here’s how it works: The bank issues an official document that states not just the account number, but also confirms the account holder’s identity and account status. These documents carry security features like watermarks, stamps, and official signatures that make them trustworthy.

Modern UAE banks have added convenience to this process. Most now offer these verification documents through their online banking portals. Account holders can download digitally stamped letters instantly, while maintaining the same level of authenticity as physical documents. These digital versions often include unique reference numbers that anyone can verify through the bank’s official channels.

3. Business Document Cross-Verification

This method connects banking details with official business identities. It works by creating a clear map between what the bank knows about an account and what official business registries show about the company. The process taps into UAE’s comprehensive business registration systems, where every registered company has verifiable credentials.

The bank account ownership verification happens by matching key details across different documents. Here’s a checklist you can use:

✔️ Verify company name matches exactly across bank account and trade license

✔️ Check business registration number is active and valid

✔️ Confirm operating address matches bank records

✔️ Ensure authorized signatories on bank account match company documents

✔️ Validate free zone license details align with bank information

✔️ Cross-check business activity codes with account type

This method proves particularly valuable in the UAE’s free zones, where businesses often maintain specific registration requirements.

4. Digital Verification Tools

Digital verification has simplified how UAE businesses confirm bank account details. These modern solutions connect with banking systems to provide quick, reliable verification results. When account details are entered into a verification platform, it checks multiple data points simultaneously – confirming if the account exists, is active, and matches the provided business information.

The process works through secure connections between verification platforms and banking databases. Rather than manually checking documents or waiting for test transactions, these systems can instantly validate account information. For businesses managing multiple payments or regular vendor setups, this means fewer delays and more confidence in their transactions. Every verification gets logged automatically, maintaining a clear record of checks performed.

Digital solutions can also do bank account ownership validation across multiple countries, making them particularly valuable for UAE businesses dealing with international partners. 

Streamlining Bank Account Verification Operations

For businesses looking to automate their verification process while maintaining compliance, Signzy offers bank account verification solutions that can significantly lower verification costs and prevent frauds. 

Our system can help prevent fraud while ensuring smooth user onboarding – particularly valuable for businesses handling high volumes of transactions or expanding their operations globally from the UAE.

Experience digital verification firsthand – book a no-obligation demo call to see how Signzy’s solutions align with your business verification needs.

FAQs

• Is bank account verification mandatory in the UAE? 

No, it’s not mandatory but highly recommended as a business best practice. It helps prevent payment issues and builds secure financial relationships, especially in free zone operations.

• How long does the verification process usually take? 

It varies by method. Digital verification is instant, micro-deposits take 1-2 business days, while document verification typically takes 2-3 business days depending on the bank.

• Can I verify international bank accounts from the UAE?

Yes, you can verify international accounts, though the process might take longer. Digital verification platforms are particularly useful for cross-border verification needs.

• What documents are typically needed for verification? 

Common requirements include bank letters, trade licenses, and business registration documents. For UAE free zone companies, additional zone-specific documentation may be required.

News headlines across India blared: “Banks Recorded Rs 1 Trillion in Fraud-Related Write-Offs.” A staggering figure, it paints a concerning picture of a financial landscape riddled with deceit. While Dinesh Khara, Chairman of State Bank of India, claims the ‘loan write-off era’ is ending, the statistics tell a different story – one of evolving fraudsters and vulnerable systems.

Digging deeper into the data from Business World, we see a worrying shift: private banks now dominate fraud-related write-offs, their share skyrocketing from 12% in 2016 to 74% in 2023. Even more alarming, while the overall number of frauds has gone up, the financial involvement has decreased. This suggests smarter, more sophisticated scams slipping through the cracks.

So, where does hope lie? Enter technology, and with it, Signzy.

The Technological Shield

Traditional fraud detection methods are akin to swatting flies with a newspaper – reactive, inefficient, and ultimately futile. The need of the hour is proactive, intelligent systems that anticipate and thwart fraud before it can wreak havoc. This is where advancements in AI and machine learning take center stage.

Signzy Steps Up:

Signzy’s suite of digital trust solutions utilizes cutting-edge AI and ML algorithms to create an impregnable barrier against fraud. Here’s how:

• Digital KYC and Onboarding: Verify customer identities in real-time with facial recognition, liveness detection, and document verification. Eliminate fake or stolen identities used for fraudulent activities.
• Continuous Transaction Monitoring: Analyze every transaction in real-time, flagging suspicious patterns and anomalies that might indicate fraud. Say goodbye to delayed detection and hefty losses.
• AI-powered Risk Scoring: Build dynamic risk profiles for each customer based on their behavior, transaction history, and external data sources. Proactively identify high-risk individuals and transactions before they can cause damage.
• Automated Investigation and Alerting: Receive instant alerts for suspicious activity, allowing for swift action and minimizing potential losses. No more time lost in manual investigations.

The Future of Security in Banks

The battle against fraud is a constant evolution, and Signzy is at the forefront. With its commitment to continuous innovation and cutting-edge solutions, Signzy empowers banks to build a future of trust and security. Imagine a financial landscape where:

• Loan approvals are instant and secure, free from the fear of fraudulent applications.
• Transactions flow seamlessly, unhindered by the specter of hidden scams.
• Customer trust thrives, knowing their finances are protected by an invisible yet invincible shield.

This is the future Signzy is building, brick by digital brick. Let’s join hands and create a banking ecosystem where fraud is not a headline, but a distant memory.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs, easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
Contact us directly!