Cross-border compliance: From Europe to China

For companies looking to grow on the Chinese market, having a cross-border framework and proper KYB and KYC compliance is of utmost importance. However, it also brings with it significant challenges to overcome.

Cross-border Compliance can be Complicated

There is a growing interdependence of the world’s cultures, populations, and economies, and a steady increase in cross-border trading of technology, information, financial services and investments. With this explosive globalization comes the inescapable issue of cross-border compliance for companies and financial institutions that are servicing clients abroad. Ensuring compliance across different borders can be both costly and risky, and due to strict regulatory consequences, there is little to no margin for error.

A proper cross-border framework requires regulatory guidance, like policies and manuals, in addition to compliance training and ongoing monitoring. The pandemic also saw a shift in operations for many global players, meaning that cross-border compliance frameworks were needed to encompass both physical and digital business activities. Checking investment proposals for country-specific restrictions to sourcing compliance information that is up to date, accurate, and reliable, is a cumbersome and never-ending process.

To make matters even more complex, training and monitoring of employees is a never-ending cycle of updates, changes, and new regulations that need to be implemented. Because of this, personnel often find themselves returning to the classroom shortly after leaving it in order to stay up to date with the ongoing changes, instead of focusing on generating revenue for the company that they work for. This, when paired with the labor-heavy tasks of monitoring things like product restrictions, client meetings, and marketing campaigns, makes the thought of expanding into a market quite daunting for many firms. As a result, many organizations only ensure that they have controls in place for high-risk areas, which naturally is a calculated risk in and of itself.

There are endless amounts of cross-border compliance challenges, and this is especially true for European companies that aspire of expanding into China.

Cross-border Compliance Challenges on the Chinese market

China is obviously not the only market that comes with cross-border compliance challenges, but it is a good example to highlight as it is a quite different market from the European one.

With over 200 million entities registered on the China mainland as of January 2021, it is estimated that more than 5 million of these are shell companies with a combined generation of 2.2 million cases of illegal activity (fraud and money laundering), in addition to over 100 million court records and 6 million penalty records. This market is complex to navigate, and to avoid becoming another victim of financial crime when doing business in China, proper business verification process (KYB and KYC checks) is both critically important, and enormously challenging.

In order to retrieve the data needed to meet the regulatory requirements for a KYC/B check in China, a company needs access to several different sources and registers, including government registers. Making this even more complex is that, obviously, all the data in these registers is in Chinese.

To then extract the required data and translate it in real time to meet the high expectations of today’s digital users, is a tough nut to crack. Once the data is out, it needs to be sorted based on the required data points and then saved to be returned to, and used again for matching for continuous controls, and then continuous compliance.

Getting to grips with China’s and other new country’s data infrastructures, regulatory requirements and in languages you don’t know is not usually part of a company’s day-to-day operations. Nor is it necessary to make it so.

ZignSec, an all-in-one platform for cross-border compliance

Thankfully, managing cross-border compliance does not have to be low-tech and resource-intensive, nor does it have to come with spiraling budgets or restricted or reimagined expansion plans. A digital revolution is finally here, and new tools for cross-border compliance are an important part of this.

We aggregate the world’s best solutions for identification and compliance and offer them as a single endpoint and suite of tools for your business. Our platform makes it easy for you to replace manual and cumbersome processes with digitized and automated workflows for KYC/B & AML checks, age verification, fraud detection, and onboarding, regardless of geographical market.

One of our 100+ aggregated service providers is AsiaVerify, a market leader when it comes to verifying your business partners, customers, and employees in real-time. An expert in KYB and KYC solutions for the Asian market and China, they offer world-class automated compliance services through impeccable sources. With their sophisticated tools, you can effortlessly mitigate your business risk and meet your compliance requirements in a matter of seconds. Their instant company check connects you directly to government registries and full coverage of over 206 million companies, including all types, statuses and sizes. With access to multiple sources and registries, your business can receive combined data packages with quality data over 60 different data points, and real-time UBO searches, all automated and translated in real-time from Chinese into English.

Through the ZignSec platform you can get access to AsiaVerify’s services in combination with services for your current and other potential markets – offering full compliance, no-code management, and complete control.

Looking into new markets and need to digitize your cross-border frameworks?

Contact us today at [email protected] if your company is tired of the ancient paper-based processes and labor-intensive tasks.

Get in touch

    Cookie Policy

    Effective date: January 1, 2020

    This notice explains ZignSec’s approach to cookies and other online data collection technologies.

    When you visit our websites, use our mobile apps, engage with our online ads or emails, we collect information, using technologies such as cookies, pixel tags (also called web beacons), browser analysis tools and server logs. Each of these technologies is explained below.

    1. How We Use Cookies

    We use cookies and other online data collection tools for several many different purposes.

    Strictly necessary cookies and tags are used by ZignSec to support the basic operations of our websites and apps. They enable core website functions, such as authentication, security, network management and accessibility. You may be able to disable these by changing your browser settings, but this may affect how the website functions.

    Performance and operation cookies and tags are used by us and our service providers to manage our websites. These activities may include collecting analytics about visitors to our website and collecting information about website usage. We use the information to compile reports and to help us improve the website. These cookies help us gather data to optimize our website’s performance.

    Site experience cookies and tags are used to support your experience and include user-selected options and site navigation aids.

    Marketing and personalization cookies are used to enable social sharing and to deliver interest-based ads to you online.

    Social media cookies and tags used by us and social media platforms to enable users of the platforms to share content across our sites. We also work with social media platforms to deliver ads to you when you use these platforms. This targeting is done by the platform under its own terms of use.

    Advertising cookies and tags used by us, our service providers and third parties to personalize the ads delivered to you on our site and on other sites. These cookies collect data about your online activity and allow ads to be displayed that may be of relevant interest to you. These cookies also record which ads you have seen and whether you engaged with the ad. These cookies help make sure that the ads you see are valuable to you and not repetitive.

    While we do not give any personally identifiable information to the third-party advertising companies, we may place third-parties’ cookies and tags when you visit a ZignSec website. This practice allows these third parties to collect information from you using these technologies on our websites. The information they collect is subject to their own privacy policies.

    Uses of cookies can vary by country or state. More information is provided in the supplemental privacy notices posted in the Privacy Center or in the relevant website or app.

    2. Your Choices

    For websites in the United States and Europe, ZignSec provides you with the ability to manage cookies that are not essential to display our website using “Manage Your Cookies” Many ZignSec websites only place marketing, personalization, and advertising cookies if you explicitly accept these cookies by clicking “Accept All Cookies” when you first visit the website. If you have accepted cookies, you adjust your preferences by using this link.

    You can manage cookies and delete cookies from ZignSec and other companies using your browser settings. Browsers such as Chrome, Internet Explorer, Firefox and Safari give you the ability to accept, reject or delete cookies. Visit the “help center” for your browser to learn more. Please note that your browser settings are not used to manage Flash or Silverlight cookies. To manage Adobe Flash Cookies, visit the Flash Player help page. To manage Microsoft Silverlight Cookies, visit the Silverlight section of Microsoft’s privacy statement.

    You can also take advantage of industry-sponsored programs that allow you to control the way companies advertise to you.

    The Network Advertising Initiative (NAI) manages an opt-out program for many third-party advertising companies. You can opt out of being targeted by NAI members by visiting

    On some websites, you may see an AdChoices icon, which may appear on certain targeted ads. You may click on this AdChoices icon to learn more information about the collection and use of your information or to opt-out of such collection in the future. To learn more about the Digital Advertising Alliance Consumer Choice tool, please visit

    Additional information on cookies and online advertising choices are offered by:

    Adobe Marketing Cloud: If you would like more information on how to remove yourself from the tracking and reporting functions performed for this website by Adobe Marketing Cloud, please visit the Opt-Out page at

    Google: For information on how Google Analytics uses data please visit “How Google uses data when you use our partners’ sites or apps,” located at

    In most cases, the choices you make are linked to your browser. If you use different browsers or different devices, you will need to set your preferences on each one. Even if you opt-out, you may still receive ads that are not customized for you, unrelated to your browser settings.

    Although our websites currently do not have a mechanism to recognize the various web browser Do Not Track signals, we do offer our customers choices to manage their cookie preferences as described in the previous section. To learn more about browser tracking signals and Do Not Track please visit

    Residents of some countries and states have additional privacy rights. Information on these rights is provided in the supplemental privacy notices posted in the Privacy Center.

    3. Social Media and other Platforms

    Our websites may enable you to interact with us and others via social media platforms. This functionality is enabled using social media cookies and tags. For example, some ZignSec websites allow you to sign in using social media platform credentials. Please read the privacy statements provided by your social media platforms to understand how they use your information and to manage your choices.

    We may display interest-based ads to you when you are using social media platforms. These platforms allow us to personalize the ads that we display to you. To enable delivery of these ads, we convert your email address into a unique number. The platforms also convert their user emails into unique numbers using the same process. This allows the records to be matched without any exchange of data elements that can identify you on their own. The platforms perform the matching as a service provider to ZignSec, and they do not retain or use the file that we send them for their own purposes. This process allows the platform to deliver our ads to our customers on the platform. The platforms may gain insights about individuals who respond to the ads we serve.

    4. Other Types of Online Data Collection

    Our server logs record information about users to our websites. We may use these logs for internal purposes, such as website administration, optimization and security. We may also use the data for fraud-protection, personalization and advertising.

    We collect device identifiers and other device-related information, including your device’s advertising ID if available. This information is used to identify the device and authenticate you. We may also use device-related information to associate you with different devices that you may use, including for fraud-protection purposes and to better target advertising. In many cases, you can reset your device’s advertising ID. Both Android and iOS devices enable you to reset your device identifier under the “settings” menu.

    5. A Guide to Cookies and Other Technologies


    Cookies are small text files that websites send to your computer or other internet-connected device to uniquely identify your browser or to store information or settings in your browser. Cookies allow us to recognize you when you return. They also help us provide a customized experience and can enable us to detect certain kinds of fraud.

    First-party cookies are those cookies that are placed by ZignSec. These cookies are used by ZignSec and include all the essential cookies.

    Third-party cookies are placed by another company, including service providers, social media cookies and third-party advertising companies. Cookies placed by third parties can be read by these third parties when you visit other sites in the advertising network, allowing a profile of your online behavior to be created so that the third party can deliver targeted ads from all its customers.

    Flash Cookies and Silverlight Cookies

    A Flash Cookie (also known as a Local Stored Object) is a small data file placed on a computer using Adobe Flash technology. A Silverlight Cookie is a small data file placed on a computer using Microsoft’s Silverlight technology. Flash and Silverlight are applications that allow delivery of dynamic content, such as video clips and animation. These cookies are used to personalize and enhance your online experience, deliver dynamic content, and for security purposes. They differ from “regular cookies” in that they are not managed using your browser settings. See Your Choices above for how to manage these types of cookies.

    Pixel Tags and Web Beacons

    Pixel tags (also called web beacons) are tiny graphic images and small blocks of code placed on website pages, ads, or in emails that allow us to determine whether you have performed a specific action. When you access the pages or you open an email, the tag lets us know you have accessed the web page or opened the email. These tools allow us to measure response to our communications and improve our web pages and promotions.

    Server Logs

    Server logs record activities on our websites. Other types of logs collect similar information from our apps. These logs record information about the device you use to access our website, your operating system type, browser type, domain and other system settings, as well as the language your system uses and the country and time zone where your device is located. Our logs also record the IP address of the device you use to connect to the Internet. An IP address is a unique identifier that devices require to identify and communicate with each other on the Internet. We may also collect information about the website you were visiting before you came to ZignSec and the website you visit after you leave our site.