Can a platform user override the UBOs identified by KYB unwrapping?
Yes, the firm can edit, add or remove individuals proposed by the automated unwrap where there is a legitimate reason, because the reporting entity owns the final UBO record.
The platform's automated unwrap proposes the UBOs based on ASIC data and the "beneficially held" flag, but the firm can edit, add or remove individuals where the firm has a legitimate reason. AUSTRAC's risk-based approach is clear that platforms inform but don't replace human judgement - the reporting entity is responsible for the integrity of the final UBO record.
Legitimate reasons to override:
- The customer has disclosed an arrangement ASIC doesn't reflect. A side agreement, a beneficiary swap, an undisclosed nominee or a recent transfer not yet lodged with ASIC.
- A "beneficially held = false" flag has been substantiated by documentation - the customer has provided the trust deed or nominee agreement, and the actual controllers have been identified.
- Effective control versus legal ownership. Where a person exercises control without formal ownership (a 24% shareholder who is also the only contact and signatory), the firm may treat them as a UBO regardless of the 25% threshold.
What overrides do not justify:
- Skipping known UBOs to save the KYC fee. Removing a beneficial owner from the record because the KYC adds cost is a compliance failure, not a workaround.
- Accepting customer assertions without evidence. If the customer says "ignore that holding company, it's just a name," the platform records the override but the firm carries the risk if the assertion turns out to be wrong.
Audit trail. Every override is logged - who made the change, when, the original automated identification and the manual override, plus the documented reason. External auditors and AUSTRAC reviews will look at the override pattern as part of any compliance assessment.
Where ASIC is wrong. The cleanest fix is to update ASIC first - a Form 484 lodgement to reflect the correct share register. easyAML re-reads from authoritative data once ASIC is updated.
See AUSTRAC's Trust and corporate services designated services page for the underlying beneficial-ownership framework.