How are director/shareholder changes for an existing entity handled?
Not a new transaction but an alteration: select the existing KYB transaction and rerun KYB to add the new director or shareholder with share percentage.
Not a new transaction - an alteration of an existing one. Select the existing KYB transaction from the legal entities list and rerun KYB process to get a company extract.. This will automatically determine whether you have further KYC obligations. The platform tracks the change as an update to the existing KYB record rather than creating a parallel KYB.
When changes happen:
- New director appointed - add to the existing KYB, with share % if also a shareholder. The new director becomes part of the KYB profile from that date and requires KYC.
- Shareholder change (sale of shares, new shareholder appointed) - update share %; if the new shareholder crosses the UBO threshold (25% beneficial ownership), they need a KYC.
- Director departure - mark as historical in the KYB record. The CDD record preserves the timeline of who was a director when.
KYB rechecks run automatically on a 3/6/12-monthly cadence by risk rating (high, medium, low) and when a new service is set up for the entity. So if the firm starts a new matter for the same entity, the KYB is verified to be current; if too much time has passed, an automatic recheck runs.
If UBOs or directors have changed, they must be KYC'd - they're a new individual identity entering the compliance perimeter and need their own verification before the entity can be considered properly verified. This is a critical step often missed by firms managing UBO changes manually; the platform prompts for the new KYC automatically.