Trace the individuals who own or control a customer
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the structure chart, company extract, trust deed or partnership agreement, list each person named and the percentage or office the document gives them. Stop at the first entity that is not an individual and leave the beneficial-owner names blank.
- What the lawyer must review
- The lawyer decides who the beneficial owners are. Act section 5, as the page states it, means an individual who directly or indirectly owns 25 percent or more of the customer, or controls the customer. The chain is followed until those individuals are identified. Control under section 11 does not require ownership. For a body corporate the page lists voting power of more than 50 percent, holding more than 50 percent of the issued share capital with the exclusions the page states, control of the board, or practical influence over financial and operational policies. For a person who is not a body corporate, the page lists control of the governing body, or the same practical influence. Section 28 requires the practice to know how the customer is owned, controlled and managed. The customer on this page is a person other than an individual. This trace is of the customer. It is not the decision about whether the practice itself is in a reporting group.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the structure chart, company extract, trust deed or partnership agreement, list each person named and the percentage or office the document gives them. Stop at the first entity that is not an individual and leave the beneficial-owner names blank. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Follow each holder of 25 percent or more until the holder is an individual.
- Apply the control tests as well as the percentage. A person can control without owning.
- For share capital, apply the exclusions the page states before treating a holding as more than 50 percent.
- Do not use this chain to decide whether the practice and its related entities are one reporting group.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.