Identify Owners
Determine who ultimately owns or controls the customer.
CDD
Beneficial Ownership. Know Who You're Dealing With
Beneficial ownership identification requirements under AML/CTF laws. Learn how to identify and verify beneficial owners for AUSTRAC compliance.
Why beneficial ownership matters
Beneficial ownership identification is a core part of customer due diligence. According to AUSTRAC, your AML/CTF program Part B must include how you identify customers and beneficial owners including politically exposed persons.
You need to understand the money laundering and terrorism financing risk they pose to your business.
Beneficial ownership requirements
25% Threshold
Typically those owning 25%+ of a company.
Verify Identity
Verify beneficial owner identity like any customer.
Ongoing Monitoring
Keep beneficial owner information current.
Frequently asked questions
What is a beneficial owner?
A beneficial owner is an individual who ultimately owns or controls a customer, or on whose behalf a transaction is conducted. This includes those with significant ownership or control.
Why is beneficial ownership important?
Criminals use complex ownership structures to hide their identity. Identifying beneficial owners helps prevent money laundering through shell companies and nominees.
How do I identify beneficial owners?
Obtain information about the customer's ownership and control structure, identify individuals with significant ownership (typically 25%+), and verify their identity.
Related resources
Beneficial ownership included
ARCaml identifies beneficial owners as part of our end-to-end CDD service.