Module 2 · Chapter 4

Beneficial Ownership: Offshore Companies and Trusts

A company can be owned through other companies and a trust. This chapter shows how to find the people at the top, and when you may rely on another firm’s checks.

≈ 8 min read 8-question test

In this chapter

  • How to follow a chain of owners from the client up to real people
  • Who counts as a beneficial owner of a company and of a trust
  • When you may rely on another firm’s checks, and what stays with you

4.1Beneficial ownership in one paragraph

Merranby is owned by a company abroad, and that company is held by a trust. The law looks through each link to the people at the top, the client’s beneficial owners. You draw the chain and find a document for each link. Another regulated firm may offer its own checks. Your firm may use them, but your firm still carries the risk.

Key point

Follow the chain until you reach people. A company or a nominee is only a link in it.

Also in this chapter

  1. Drawing the chain of owners
  2. Who counts as a beneficial owner
  3. Relying on another firm’s checks
  4. The trustee’s letter and the trust deed
  5. Your job

Preview

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