Several scandals have rocked the fintech ecosystem in Ghana. Notable cases are the cases of Dash and Float; both key issues include misrepresentation, diverting funds for personal use and a lack of license. Operations in these two former firms have been halted and are no longer in operation, with doubtful futures ahead for the staff and vision of this establishment.
It is reasonable to state that appropriate and adequate complaint measures would have averted the negative occurrences that ensued if the business had been verified. To avoid future occurrences, we will address how to do business verification in Ghana in this article.
What is Business Verification
One of the primary reasons or basis for business verification is to prevent fraud and money laundering. It is a process that is used to confirm the legitimacy and accuracy of information related to a business entity.
This process is also crucial in various business situations, such as partnerships, financial transactions, regulatory compliance, and risk management. Business verification ensures that the information provided by a business is truthful and aligns with legal requirements and industry standards.
What are the Benefits of Business Verification in Ghana?
Some of the benefits or advantages of Business Verification include:
1. Fraud Prevention
Business verification is a crucial measure against fraud in B2B partnerships. By confirming the legitimacy of businesses, organisations can mitigate the risk of fraudulent activities, including identity theft, fake documentation, and other deceptive practices.
2. Risk Mitigation
Verification helps in risk management by identifying and mitigating potential risks associated with fraudulent activities, financial instability, or non-compliance. This proactive approach safeguards the interests of all parties involved in B2B relationships.
3. Compliance With Regulations
Many industries have specific regulations and compliance requirements. Business verification ensures compliance with Anti-Money Laundering (AML), Know Your Customer (KYC), and other regulatory standards, reducing the risk of legal issues and penalties.
4. Improved Reputation
Engaging in B2B relationships with verified and reputable businesses positively impacts an organisation's reputation. Clients, investors, and stakeholders are more likely to trust and associate with businesses that demonstrate a commitment to due diligence through proper verification processes.
5. Improved Decision-Making
Accurate business information obtained through verification processes provides executives with valuable insights. Informed decision-making regarding partnerships, collaborations, and investments is facilitated, minimising the chances of entering into agreements with unreliable entities.
6. Financial Security
Verification contributes to financial security by reducing the likelihood of fraudulent transactions. This is particularly relevant in large-scale transactions with high financial stakes, ensuring that organisations do not incur losses due to dealings with illegitimate partners.
7. Efficient Resource Allocation
Organisations can allocate resources more efficiently by ensuring the legitimacy of B2B partners. They can focus on building relationships with trustworthy entities, streamlining processes, and optimising operations without distractions from fraudulent or non-compliant businesses.
8. Prevention of Identity Theft
Business verification plays a crucial role in preventing identity theft and impersonation. Verifying business entities' identities ensures that organisations interact with the intended parties and do not fall victim to schemes involving false identities.
9. Real-Time Monitoring and Updates
Some verification systems, such as Youverify, offer real-time monitoring and frequent database updates. This ensures that businesses can verify even recently registered entities promptly, staying ahead of potential risks.
How to Verify a Business in Ghana
The process of verifying a business in Ghana is overseen by the Registrar General’s Department (RGD), which is the primary body responsible for the registration of companies and businesses. To conduct a business verification in Ghana, follow this step-by-step guide:
1. Visit the Registrar General's Department (RGD) Website:
Visit the RGD website, responsible for company registrations, and serves as your primary resource. Their website acts as a central hub for business information in Ghana.
2. Utilize the Online Search Tool:
The RGD website offers a search function. Simply enter the business name (ensure accuracy) or, if known, the company registration number.
3. Analyze Search Results:
Upon entering the details, the search will display information about the company, if registered. This typically includes registration status, business type, incorporation date, and registered office address.
4. Obtain an Official Extract (Optional):
For a more formal verification, consider requesting an official extract from the RGD. This document serves as legal proof of the company's registration details and status, potentially required for official or legal business purposes.
How To Perform Business Verification In Ghana Using Youverify- Fast and Easy Way
Here, we will be taking you on a step-by-step journey on how businesses can perform business verification using Youverify’s solution:
Step 1: Create an account and login to the Youverify platform
Step 2: Navigate to “Business Verification” on the left side of your home page
Step 3: Select “ Check”
Step 4: Select either “Company Search” (gives you basic company information) or “Advanced Company Search” (gives you elaborate information including details on shareholders and other affiliated entities)
Step 5: Fill up the requested information like “Country”, “Registration Number”, “Company Name”, etc and click “Search”.
The detailed business information will be revealed.
See how to perform business verification in Kenya, Nigeria and also in South Africa
Benefits And Features of Youverify’s Business Verification Solution
1. Real-Time Business Verification:
Youverify's business verification database is updated every 5 minutes, providing real-time information about businesses. This ensures users can verify even recently registered businesses, offering a significant advantage over competitors with longer update intervals.
2. Comprehensive KYB Solution
Youverify's Know Your Business (KYB) solution offers comprehensive features, including registry screening, customer checks, board evaluations, and Ultimate Beneficial Owners (UBOs) screening. This enables businesses to uncover potential threats early in their relationships and conduct thorough due diligence.
3. Fast and Efficient Verification Process
With an average verification time of 1 second, Youverify's solution prioritises efficiency. Quick integration with the Youverify SDK in just 30 minutes allows businesses to incorporate the verification process into their workflows seamlessly.
4. Global Coverage and Easy API Integration
Youverify offers global coverage, allowing businesses to verify legal registration status, addresses, employees, and directors worldwide. The er-friendly KYB APIs make it easy to customise services according to specific platform needs.
5. Real-Time AML Screening
In real-time, businesses can screen entities for watchlisting, Politically Exposed Persons (PEPs), global sanctions, and adverse media. This ensures compliance with Anti-Money Laundering (AML) regulations and helps prevent fraudulent activities.
6. KYC Verification of UBOs
Youverify's solution allows for the Know Your Customer (KYC) verification of Ultimate Beneficial Owners (UBOs). This feature streamlines compliance efforts and enhances fraud prevention measures.
7. User-Friendly Case Management Tool
Youverify provides an easy-to-navigate interface and a case management tool for a faster and more efficient review of business verification results. This empowers businesses to make informed decisions based on verified data.
8. Seamless Integration with Tech Infrastructure
Businesses can seamlessly integrate Youverify's solution into their tech infrastructure using plug-and-play SDKs or APIs. The process is simple, with a 99.9% uptime, ensuring a reliable and continuous service.
9. Customisable KYB Workflows
Youverify's solution allows businesses to prioritise efficiency by customising KYB workflows. This flexibility enables users to select verification parameters aligning with their business needs.
Bottom Line
It is crucial for every business to conduct business verification to avert significant losses that may cause setbacks for the organisation. Youveriy offers seamless systems to conduct business verification with ease, with features such as seamless integration. As an entrepreneur or organisation in Ghana, it is important to be equipped in such an unstable tech ecosystem or business sector in Ghana.
See how 750+ global companies use Youverify for Business verification and AML screening of entities for compliance and real-time risk detection. Request a demo today.
Updated July 16, 2024: Temitope Lawal