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Ultimate Beneficial Owner’s Report

The better way to stay compliant and identify a beneficial owner

What is the Ultimate Beneficial Owner’s Report?

CreditorWatch recognises the responsibility that comes with compliance to the Know Your Customer (KYC) requirements and the Anti-Money Laundering / Counter Terrorism Financing Act. With our Ultimate Beneficial Owner’s Report, we take the hassle out of identifying beneficial owners and do the hard work for you – with the simple click of a button.

A beneficial owner is an individual or non-individual who controls or owns at least 25% or more of a company’s shares. It isn’t always easy to identify this due to the common complex structures of commercial entities. There can be multiple shareholders within a company and they can be made up of individuals and/or other holding companies.

Manually finding this information requires a lot of research and calculations. It can be very messy and time consuming. See the example:

Individual X is a beneficial owner because they directly own 25% of Customer PTY LTD.

Individual G is a beneficial owner because they hold 80% of the units in C Trust (a unit trust) which in turn owns 80% of A PTY LTD, which owns 50% of Customer PTY LTD (meaning Individual G has an indirect .8 x .8 x .5 = 32% ownership of Customer PTY LTD).

Individual Y is a beneficial owner because they have two interests that collectively amount to an indirect 25% of Customer PTY LTD:

  • The first is their 20% interest in A PTY LTD, which owns 50% of Customer PTY LTD (providing an indirect .2 x .5 = 10% ownership of Customer PTY LTD).
  • The second is their 60% interest in B PTY LTD, which owns 25% of Customer PTY LTD (providing an indirect .6 x .25. = 15% ownership of Customer PTY LTD).
  • Adding these together, Individual Y has a 10% + 15% = 25% interest in Customer PTY LTD.

Why do I need to identify a beneficial owner?

Doing business with non-individual customer types has different risks than doing business with individuals. It is a requirement from AUSTRAC under Part B of and AML/CTF Program for businesses to identify and verify their customers and understand their customers’ financial activities. By knowing its customers, a business should be better able to mitigate risks such as money laundering and terrorist funding. It is crucial for busine sses in certain industries to comply with KYC/ AML (anti-money laundering) regulations. Failure to comply can result in fines and other consequences. In order to meet the obligations of compliance, you must:.

  • 1. Assess the money laundering/terrorism risk posed by the beneficial owners of your customers. It is necessary to review beneficial owner risks regularly
  • 2. Determine the identity of the beneficial owner(s) of your non-individual customers
  • 3. Collect and take reasonable measures to verify each beneficial owner’s identification information such as full name, date of birth and residential address.
  • 4. Keep records of the beneficial owner identification processes to comply with Division 3 of Part 10 of the AML CTF Act 2006.
  • 5. Document how you will fulfil your obligations in the AML/CTF program

How Does the Ultimate Beneficial Owner’s Report Work:

While identifying a beneficial owner appears daunting, CreditorWatch customers will have the opportunity to download a UBO report from their dashboard. With the click of a button, our software will scan through ASIC reports, calculate ownership percentages and display the beneficial owner(s). In turn, you’re left with a clean, easy to read PDF report output that you can store on file.

This report increases efficiency, keeps you organised, reduces cost and saves time. It’s a simple way to comply with regulations and provides easy reference. It only makes sense to obtain a UBO through your CreditorWatch dashboard.

  • CreditorWatch customers can download the UBO report straight from their dashboard
  • With the click of a button, CreditorWatch will do all of the hard work and research for you
  • Various reports and data will be processed and compiled into an easy to read PDF report
  • Review identification information and assess AML/CTF risk
  • Easily determine the identity of the beneficial owner(s) of you non-individual customers
  • The report is an organised and easy to assess record to keep on file

Benefits of the Ultimate Beneficial Owner’s Report

  • Easily identify non-individual customers
  • Identify risk posed by the beneficial owners of your customers
  • Simple, easy-to-read report for quick reference
  • An efficient way to comply with the AML CTF Act
  • Save time and money
  • A better way to ensure compliance

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