--- title: Why does the system show 'beneficially held = false' for a shareholder? description: Why does the system show 'beneficially held = false' for a shareholder - This comes directly from ASIC. --- [Skip to content](https://knowledge.easyaml.com/why-does-the-system-show-beneficially-held-false-for-a-shareholder#main-content) English - Australia Show submenu for translations Open main navigation Close main navigation - English - Australia Show submenu for translations How can we help you? - There are no suggestions because the search field is empty. 1. [easyAML Help Centre](https://knowledge.easyaml.com/?hsLang=en-au) 2. [FAQs](https://knowledge.easyaml.com/faqs?hsLang=en-au) 3. [Trusts & Complex Structures](https://knowledge.easyaml.com/faqs?hsLang=en-au#trusts-complex-structures) # Why does the system show 'beneficially held = false' for a shareholder? ## Because ASIC's share register records that the shareholder is not the true economic owner of those shares (typically. This comes directly from ASIC. When a company files a share register update, it specifies for each shareholding whether the shares are held **beneficially** (the shareholder is the true economic owner) or **non-beneficially** (the shareholder is holding the shares for someone else, typically as trustee, nominee or custodian). When easyAML sees `beneficiallyHeld = false` on a shareholding: - It treats the named shareholder as **not the ultimate owner** of those shares. - It flags the entity as having a likely **trust, nominee or custodian arrangement** sitting behind it. - It pauses the KYB unwrap at that layer and requests documentation - usually the trust deed plus details of trustees, appointor and beneficiaries. Why this matters for CDD: AUSTRAC's beneficial ownership rules look through legal title to the natural persons who **ultimately own, benefit or control** the customer. A "beneficially held \\= false" flag is the platform's way of saying *we haven't yet reached the ultimate owner - keep unwrapping*. Once the trust deed and controlling persons are loaded, the structure is fully verified. If you believe the ASIC flag is wrong (e.g. the share register hasn't been updated to reflect a transfer), the customer should update the ASIC record first - easyAML re-runs from authoritative data, so a manual override would defeat the audit trail. See AUSTRAC's [Trust and corporate services designated services](https://www.austrac.gov.au/new-austrac/designated-services-newly-regulated-entities/trust-corporate-services). ### Related articles - [What does the KYB unit price include?](https://knowledge.easyaml.com/what-does-the-kyb-unit-price-include?hsLang=en-au) - [A KYB failed to identify known UBOs. What's the workaround?](https://knowledge.easyaml.com/kyb-missed-ubos-workaround?hsLang=en-au) - [Can a platform user override the UBOs identified by KYB unwrapping?](https://knowledge.easyaml.com/can-a-platform-user-override-the-ubos-identified-by-kyb-unwrapping?hsLang=en-au) - [For company/trust onboarding where the trust deed isn't yet in easyAML, what should the user do?](https://knowledge.easyaml.com/onboarding-without-trust-deed?hsLang=en-au) - [How are director/shareholder changes for an existing entity handled?](https://knowledge.easyaml.com/how-are-director-shareholder-changes-for-an-existing-entity-handled?hsLang=en-au) - [easyAML Set-up Checklist](https://knowledge.easyaml.com/easyaml-set-up-checklist?hsLang=en-au) - [Training Videos](https://knowledge.easyaml.com/training-videos?hsLang=en-au#main-content) - [Register for Upcoming Webinars](https://knowledge.easyaml.com/training-videos?hsLang=en-au#register-for-upcoming-webinars) - [Previously Recorded Webinars](https://knowledge.easyaml.com/training-videos?hsLang=en-au#previously-recorded-webinars) - [FAQs](https://knowledge.easyaml.com/faqs?hsLang=en-au#main-content) - [General](https://knowledge.easyaml.com/faqs?hsLang=en-au#general) - [AML/CTF basics](https://knowledge.easyaml.com/faqs?hsLang=en-au#aml-ctf-basics) - [Getting started](https://knowledge.easyaml.com/faqs?hsLang=en-au#getting-started) - [Compliance Program](https://knowledge.easyaml.com/faqs?hsLang=en-au#compliance-program) - [Customer Due Diligence (CDD)](https://knowledge.easyaml.com/faqs?hsLang=en-au#customer-due-diligence-cdd) - [Training](https://knowledge.easyaml.com/faqs?hsLang=en-au#training) - [Reporting](https://knowledge.easyaml.com/faqs?hsLang=en-au#reporting) - [Sector Coverage](https://knowledge.easyaml.com/faqs?hsLang=en-au#sector-coverage) - [Pricing & Plans](https://knowledge.easyaml.com/faqs?hsLang=en-au#pricing-plans) - [Sales & Onboarding](https://knowledge.easyaml.com/faqs?hsLang=en-au#sales-onboarding) - [Trusts & Complex Structures](https://knowledge.easyaml.com/faqs?hsLang=en-au#trusts-complex-structures) - [Reliance & KYC Sharing](https://knowledge.easyaml.com/faqs?hsLang=en-au#reliance-kyc-sharing) - [ACMA SMS Sender ID Register](https://knowledge.easyaml.com/faqs?hsLang=en-au#acma-sms-sender-id-register) - [Quick Answers](https://knowledge.easyaml.com/faqs?hsLang=en-au#quick-answers) - [How-to Guides](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#main-content) - [Tasks](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#tasks) - [Transactions](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#transactions) - [Entities](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#entities) - [Insights](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#insights) - [Training](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#training) - [Compliance](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#compliance) - [Reports](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#reports) - [Account Settings](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#account-settings) - [Billing & Plans](https://knowledge.easyaml.com/how-to-guides?hsLang=en-au#billing-plans) - [KYC Information](https://knowledge.easyaml.com/kyc-information?hsLang=en-au#main-content) - [Client Resources](https://knowledge.easyaml.com/kyc-information?hsLang=en-au#client-resources) - [Person being verified](https://knowledge.easyaml.com/kyc-information?hsLang=en-au#person-being-verified) - [Glossary](https://knowledge.easyaml.com/glossary?hsLang=en-au) - [Integrations](https://knowledge.easyaml.com/integrations?hsLang=en-au#main-content) - [General](https://knowledge.easyaml.com/integrations?hsLang=en-au#general) - [Action Step](https://knowledge.easyaml.com/integrations?hsLang=en-au#action-step) - [Clio](https://knowledge.easyaml.com/integrations?hsLang=en-au#clio) - [XPM](https://knowledge.easyaml.com/integrations?hsLang=en-au#xpm) - [Scantek](https://knowledge.easyaml.com/integrations?hsLang=en-au#scantek) - [News Feed](https://knowledge.easyaml.com/news-feed?hsLang=en-au#main-content) - [Latest Release Notes](https://knowledge.easyaml.com/news-feed?hsLang=en-au#latest-release-notes) - [Support](https://knowledge.easyaml.com/support?hsLang=en-au) [![easyAML-Logo\_Magenta](https://knowledge.easyaml.com/hs-fs/hubfs/easyAML-Logo_Magenta.png?width=200&height=47&name=easyAML-Logo_Magenta.png "easyAML-Logo_Magenta")](https://easyaml.com/) Copyright © 2026, easyAML