Comply with regulationsRegulatory authorities are here for a reason. Nacha account validation requirements ensure that you have the correct bank details to charge your clients for example. They also provide resources and documentation for doing account validation the correct way.The same goes for the KYC (Know Your Customer) and AML (Anti-Money Laundering) frameworks, which apply to certain high-risk industries like insurance.Regulatory compliance makes sure standards are met across industries.Abiding by them means protecting your business from a potential security breach, money laundering, or terrorism funding. It also protects your consumers’ sensitive information, which in turn leads to a more trusting relationship between you.Standardize your processesStandardizing your account validation is key for consistency across your company. Account validation is a business process like any other – it needs to be streamlined in order to be efficient. The way you go about this exactly depends on your organization.Have a look at where you’re at now, and think about how you could make your actual process more effective. You might need to involve more people in it, simplify it, officialize one process for the whole company, communicate more regularly, and so on.One thing is sure, however: you need to systematically check the financial information of your third parties – especially for overseas suppliers! Checking a merchant when you create its’ record in your database is a first step but it’s not enough: you need to ensure controls are done systematically during the supplier lifecycle.That’s why it’s important that account validation be part of your regular internal controls, and as such is communicated consistently in your company. It all leads to increased cybersecurity, as well as leaves an audit trail in case of external control.Do your due diligenceAccount validation is about more than meeting the standards of regulatory bodies. At its heart, it’s about ensuring that your company isn’t sending funds to scammers, hackers, terrorists, or any malicious person. It’s an essential addition to your current anti-fraud measures.Strong account validation needs to be an integral part of your customer due diligence process. This means going beyond standard background checks and incorporating robust business process controls. You need to be sure you won’t be defrauded and fund illegal activities unknowingly.Enhanced due diligence is possible thanks to Trustpair, which carries out systematic and automated checks. Our vendor data management system means you can trust that your account validation covers all the authentication details that you might otherwise miss with manual verification.