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, plus anyone acting on behalf of the sole trader with authority evidence.
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?