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Beneficial ownership review checklist

Beneficial ownership verification is central to AML/CTF customer due diligence. Firms must identify the natural persons ultimately owning or controlling the client. This checklist is for AML compliance officers and client onboarding teams.

In short

This is a 12-step checklist for verifying beneficial ownership of corporate, trust, and partnership clients under Australian AML/CTF rules.

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12-step checklist

The checklist

1

Obtain the organisational structure

Obtain a current structure chart showing all tiers of ownership.

2

Review ASIC extracts

Obtain ASIC extracts for each Australian company in the structure.

Corporations Act 2001 (Cth)
3

Identify the 25% threshold

Identify individuals directly or indirectly holding 25% or more of the client.

Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No 1)
4

Identify controllers

Identify individuals exercising control through other means — voting rights, appointment, or veto.

5

Review trust deed

For trusts, obtain the trust deed and identify settlors, trustees, beneficiaries and appointors.

6

Identify discretionary beneficiaries

Document classes of discretionary beneficiaries and any default beneficiaries.

7

Review partnership agreements

For partnerships, obtain the partnership agreement identifying all partners.

8

Verify each identified person

Verify identity of each beneficial owner using reliable documents.

9

Check public registers

Check public beneficial ownership registers if available in relevant jurisdictions.

10

Document the chain

Document the full ownership chain and calculation of effective holdings.

11

Refresh annually

Refresh beneficial ownership information at defined intervals or on material change.

12

Retain records

Retain records for at least 7 years after the end of the relationship.

Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) s 107
When to use

When this checklist applies

Use when onboarding any corporate, trust, or partnership client under AML/CTF rules.

Common pitfalls

  • Missing control exercised through voting or appointment rights
  • Discretionary trust beneficial owners not identified
  • Structure chart missing international tiers
  • Refresh schedule not tracked
  • Records not retained for 7 years
Use with Quillio

Run this checklist on a real matter

Quillio can extract beneficial ownership from ASIC extracts and trust deeds. See /practice-areas/firm-management or start a free trial.

General guidance for beneficial ownership verification. Apply the current AML/CTF Rules and AUSTRAC guidance.

Use this checklist on your matter.

Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.

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