Beneficial Owners, Effective Controllers & Customers

For AML/CTF you need to list who you will do identity checks on. These people are beneficial owners, effective controllers or customers.  

Who is a 'Beneficial Owner' ?

For AML/CTF you need to list the names of all clients, their representatives and any beneficial owners. Beneficial owners are people who either are:

  • A 25% or greater shareholder in the client

  • Hold more than 50% voting rights for the client

  • In effective control of the client, have decision making power or influence over the client.

Who Depends on your Customer Entity Type

Different entity types will have roles that are normally considered beneficial owners. For example the directors of a company or the partners or a partnership.

AML Customer Due Diligence section of 2Shakes you can click on the Entity Type & Info button to see help specific to the entity type that applies to each customer.

Possible Beneficial Owners by Entity Type

Directors, Board Members, Individuals who own more than 25% of shares, Individuals with more than 50% of voting rights, Individuals who determine financial or operational decisions (e.g. CEO, managing director)

Body Corporate

Partnership

Individuals holding 25% or more of partnership interests, Individuals who exercise control over the management, operations or finances of the partnership, Individuals with more than 50% voting rights, General partner in a limited partnership (or the individual who owns or controls the general partner)

Trust

All trustees who are individuals, Individuals who own or control the trustee (for a corporate trustee), Any settlors (if they can exercise control), Any appointors, protectors, controllers or other individuals with control over elements of the trust, Any individuals holding 25% or more of units of a Unit trust, individuals (beneficiaries) entitled 25% or more of distributions of discretionary/family trust:, (if identifiable), the beneficiary (bare trust).

Association

All Responsible People, including members of the governing body, or those directing or guiding the strategic direction of the charity, Any other individual with authority to direct decisions, access funds or control management and decision making

Government Body

Individuals with primary responsibility for governance and executive decisions (for example, CEO, department secretary, board of commissioners), Authorised signatories

More Help

Didn’t find what you need here? You can find lots more help on our AML Support Page.

Or you can Contact us or email us at support@2shakes.com.au and we can help you with what you need to know.