How does the "legal entity unwrap budget" setting function for KYB?
Controls whether of corporate ownership the platform traces stops at a pre-set limit during unwrapping.
It controls how many layers of corporate ownership the platform will trace during the unwrap before stopping. The default is no budget, which aligns with AUSTRAC's expectation that reporting entities identify the ultimate natural-person controllers without stopping at any particular amount.
Set the maximum spend (AUD) applied to every legal entity ownership unwrap for this account. This cap is applied automatically to each unwrap and cannot be changed per-run. If you set a budget any corporate entities beyond the budget are left un-explored and you can manually continue from the ownership graph.
How it works(examples):
- $40 budget = the operating company (the customer).
- $80 budget = the operating company and a corporate shareholder.
- $200 budget = the operating company and upto 4corporate shareholders.
The platform stops automatically once every branch terminates in a natural person or there is no more possible UBOs to be found. The budget setting is the safety ceiling, not a target - if a $200 budget resolves at 2 entities, the you're only paying for those 2 entities.
Why would I use. Generally it is recommended however if you have clients that you may not want to onboard or you want to collect payment if it level is reached - this allows you to do that.
Lowering below $40 isn't appropriate - it risks the unwrap stopping before unwrapping a single entity.
What about trusts in the middle of a structure? The unwrap asks for any trust's uncovered asks for the deed - the budget setting controls automated company-to-company unwrapping, not trust handling.