When our customer is a sole trader, who do we need to KYC?
Verify both the business (name, ABN, addresses, trading names) and the individual operating it.
A sole trader is treated as a distinct customer type because you need to verify both the business and the individual operating it.
Information to collect about the sole trader business
- Business name (trading or registered)
- ABN, where one has been issued
- Principal place of business
- Any other business names used to run the business in Australia
Individuals to identify (KYC)
- The individual operating the business.
- Anyone acting on the sole trader's behalf, plus their authority.
- Any party the sole trader is receiving the service on behalf of.
- PEP and sanctions screening on all identified individuals.
See AUSTRAC's Initial CDD for sole traders (Reform) page.
Related articles
- What happens if I don't meet AUSTRAC's fit-and-proper requirements? Does my business have to shut down?
- Glossary: Key Terms & Definitions
- What's the difference between CDD, KYC and KYB - and when does each apply?
- What does the Compliance Officer role actually require?
- How are AUSTRAC governance body and designated services described in plain terms for a small business?