What is a beneficial owner?
Any individual who directly or indirectly owns 25% or more of an entity through shares, units or membership interests, or who controls the entity's decision-making.
A beneficial owner is any individual who, directly or indirectly:
- Owns 25% or more of the entity (through shares, units, capital or membership interests), or
- Controls the entity (the ability to influence or direct decision-making, whether formal or through practical influence).
Control is broader than ownership. It includes the power to appoint or remove directors or trustees, the ability to direct financial and operational decisions, and patterns of established behaviour - even where there is no formal shareholding. If the chain of ownership runs through other companies or trusts, you need to follow it until you reach the natural persons at the end. See AUSTRAC's Determining ownership and control structures (Reform) page.
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