Client intake Current
Requesting beneficial ownership information from a corporate client
A practical approach to asking about ultimate ownership and control.
Understanding who ultimately owns or controls a corporate client is a core part of customer due diligence, but the question can feel unusual to clients who aren't used to being asked. This guide sets out a practical approach to asking it clearly. It is general information, not legal or compliance advice.
Action plan
1 Explain why the question is being asked A short explanation that this is standard practice for corporate clients generally reduces friction.
Customer due diligence for a corporate client generally extends beyond the people named on the public register to the individuals who ultimately own or control it. Framing the question as a standard part of onboarding every corporate client, rather than something specific to them, generally helps the conversation go smoothly.
- Explain that beneficial ownership questions are asked of every corporate client
- Ask who ultimately owns or controls the company, not just who is listed as a director
- Give the client a plain description of what "beneficial owner" means in this context
Done when: The client has been asked clearly who ultimately owns or controls the business
AUSTRAC: overview of customer due diligence2 Ask about ownership and control separately Ownership and control aren't always held by the same person; ask about both.
A person can control a company without owning a large share of it (for example, through voting arrangements or a senior management role), and an owner may not be involved in day-to-day control. Ask about both ownership and control so the picture is complete.
- Ask who owns significant shares or interests in the company
- Ask who controls the company's decisions, even if they hold no shares
- Document both separately rather than assuming they're the same people
Done when: Both ownership and control have been documented, even if held by different people
AUSTRAC: overview of customer due diligence3 Verify against independent evidence where practical Cross-check what the client tells you against independent evidence where you can.
Where practical, cross-check what the client tells you about beneficial ownership against independent evidence, such as company register information or supporting documents, rather than relying on the client's statement alone.
- Cross-check stated beneficial owners against available independent evidence
- Note where independent evidence isn't available and why
- Escalate through your firm's process if the client's account doesn't add up
Done when: Stated beneficial ownership has been checked against independent evidence where practical
See requesting formation documents from a new company client