Know Your Business Partner (KYC/KYS/KYB due diligence) | Use Case

Today, however, these verification processes remain fragmented. Differences in national practices, regulatory interpretations and the limited use of interoperable digital solutions increase operational costs, slow onboarding, create compliance risks and hinder seamless transactions within the Single Market. Businesses spend significant time collecting documentation in advance, while counterparties spend additional time validating the same information afterwards, slowing down business activity across the EU as a whole.

EU Business Wallets (EBW), supported by the EU Digital Identity Wallet (EUDIW), have the potential to fundamentally improve this.

They will improve the process of Knowing Your Business Partners (KYBP) due diligence to meet regulatory and general business requirements. Digitalising this process through European wallets will increase its efficiency and reduce time and resources businesses need to verify their partners with enhanced accuracy and consistency. At the same time, this will reduce exposure to fraud, corruption and financial crime, making cross-border verification processes faster, more secure and truly seamless across the Single Market.

For example

A company wants to work with a supplier in another EU country, but currently must navigate different national verification processes, regulatory requirements, and documentation standards, often relying on PDF documents exchanged via email or lengthy online forms. This leads to delays, additional costs and uncertainty about the legitimacy of the business partner. With standardised KYC/KYS/KYB processes enabled through the EUDI Wallet, the supplier will instead be able to authenticate themselves by logging into their wallet and securely sharing the required verified data on identity, ownership and compliance, significantly reducing administrative effort and saving time for both parties in providing and validating the necessary information.

What we’re aiming for:

Digitising the Know Your Business Partner (KYBP) due diligence process to increase its efficiency and reduce the time and resources businesses need to verify their partners

Showing how the EU Business Wallet and the EUDI Wallet for individuals can be used in Know Your Business Partner (KYBP) due diligence to meet regulatory and general business requirements

Reducing overall transaction costs across the economy

Improving accuracy and consistency, reducing the risk of fraud, corruption, and financial crime in general

Use Cases

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USE CASE

Create Company Branch

Creating a company branch in the EU involves enabling businesses to expand across member states while ensuring compliance, transparency, and security of corporate data. It’s a key enabler for European businesses to operate and scale with confidence across borders.

USE CASE

Foreign Tax Declaration

Foreign tax declaration in the EU ensures that companies comply with tax obligations when operating across member states, particularly in cross-border structures involving parent companies and subsidiaries. It is a critical enabler of transparent and lawful business activity within the EU Single Market.

USE CASE

Company Representative acting on behalf of a Company

Authorizing individuals to act legally and digitally on behalf of a business across member states, and defining which activities they are permitted to perform, is a key enabler for efficient cross-border operations, including administrative procedures and banking services.

USE CASE

Issuing Micro-Credentials and Verified Skills

Micro-credentials and verified skills enable individuals to develop and demonstrate specific skills and competences through digital certificates linked to short-term learning, training or practical experience. This is a critical enabler of lifelong learning, workforce mobility, and skills transparency across Europe.

USE CASE

Business Access to Once-Only Technical System (OOTS)

The Once-Only Technical System (OOTS) streamlines data retrieval for cross-border procedures, enhancing trust, efficiency, and data exchange among EU public administrations and citizens. It connects public authorities across the EU, so they can exchange official documents and data at the citizen's or business's request. It’s a key component for improving registration, compliance, and reporting processes across the EU.

USE CASE

Authentication & Access for Transport

Authentication and access in transport involve verifying who or what is requesting access to transport-related systems and services, and determining what actions they are authorized to perform. This is a critical enabler of seamless logistical flows across Europe and efficient global transport operations.

USE CASE

Trusted Data Sharing for Data Spaces

Data is transforming how we live, work and innovate, powering everything from personalised medicine to smarter cities. Trusted data sharing in secure Data Spaces lets organisations optimally collaborate and innovate while keeping control, privacy, and compliance. To unlock the value of data for the EU, Common European Data Spaces have been established in strategic sectors, providing an open, secure, and privacy-preserving environment. These Data Spaces enable new data-driven services and strengthen a connected, competitive European data economy.

USE CASE

eInvoicing

eInvoicing is the structured electronic exchange of machine-readable invoice data between suppliers and buyers, enabling automatic processing, as defined in EU legislation. These structured digital invoices have many benefits, from facilitating cross-border trade and reducing late payments, to enhanced error detection and clear sustainability reporting. It’s a key enabler for improving Europe’s single market in the digital age.

USE CASE

Consumer Banking

Financial services for EU citizens, such as opening a bank account in another member state, rely on strong data protection, transparency, and regulatory compliance, while keeping the process seamless for users.

USE CASE

Consumer Payments

Consumer payments in the EU involve providing fast and secure transactions across member states while protecting users and ensuring transparency.

USE CASE

Corporate Banking

Corporate banking in the EU involves enabling businesses to operate across borders through secure financial services. This includes trusted onboarding and account opening processes, during which banks verify identities and ensure regulatory compliance.

USE CASE

Corporate Payments

Corporate payments in the EU involve enabling fast and secure cross-border transactions while ensuring compliance, data protection, and transparency. A core component of day-to-day business operations across member states.