--- title: "Beneficial Owner Identification Guide | HeadStart Docs" description: "Section 36 requires identification of beneficial owners - the natural persons who ultimately own or control your client. Learn the >25% threshold and verification steps." lang: en-AU json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "HeadStart Docs", "legalName": "HeadStart Docs Pty Ltd", "url": "https://www.headstartdocs.com.au", "logo": { "@type": "ImageObject", "url": "https://www.headstartdocs.com.au/logo-512.png?v=4", "width": 512, "height": 512 }, "description": "AML/CTF compliance digital products and programs for Australian businesses under Tranche 2 regulations. Free program documents and AML Portal. 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HeadStart Docs products are digital publications that give you a substantial head start, but they must be reviewed and tailored by a qualified solicitor to your specific business circumstances before implementation." } }, { "@type": "Question", "name": "How is HeadStart Docs different from the free AUSTRAC Starter Kits?", "acceptedAnswer": { "@type": "Answer", "text": "AUSTRAC Starter Kits are generic starting points that require significant customisation. HeadStart products are sector-specific, pre-populated with industry-relevant risk factors and scenarios, and include 12 months of AML Portal access for ongoing compliance including screening, record keeping and reporting tools." } }, { "@type": "Question", "name": "What if the AML/CTF rules change after I purchase?", "acceptedAnswer": { "@type": "Answer", "text": "Your digital products are yours to keep. If significant regulatory changes occur, updated versions will be available to active portal subscribers. The AML Portal itself is continuously updated to reflect current AUSTRAC requirements and sanctions lists." } }, { "@type": "Question", "name": "What happens after my 12-month AML portal access expires?", "acceptedAnswer": { "@type": "Answer", "text": "Your documentation is yours forever. To continue using the AML Portal (screening tools, compliance calendar, record keeping), you pay $35 per customer CDD. Cancel anytime — no subscription required." } }, { "@type": "Question", "name": "Is HeadStart Docs a law firm?", "acceptedAnswer": { "@type": "Answer", "text": "No. HeadStart Docs is a digital publisher and platform provider. We sell digital compliance products and portal access. We do not provide legal advice. Referrals for legal advice can be made to our related law firm, HeadStart Counsel." } }, { "@type": "Question", "name": "When does AML/CTF Tranche 2 commence in Australia?", "acceptedAnswer": { "@type": "Answer", "text": "Tranche 2 AML/CTF obligations commence on 1 July 2026. All reporting entities in designated sectors including lawyers, accountants, real estate agents, conveyancers, and trust and company service providers must have their AML/CTF programs in place by this date." } } ] }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.headstartdocs.com.au/" }, { "@type": "ListItem", "position": 2, "name": "Free Resources", "item": "https://www.headstartdocs.com.au/tranche-2-resources" }, { "@type": "ListItem", "position": 3, "name": "Beneficial Owner ID", "item": "https://www.headstartdocs.com.au/tranche-2-resources/beneficial-owner-identification" } ] }, { "@context": "https://schema.org", "@type": "Article", "headline": "Identifying Beneficial Owners: Your Section 36 Obligation", "description": "Section 36 requires you to identify beneficial owners - the natural persons who ultimately own or control your client. Learn the >25% threshold rule and verification steps.", "datePublished": "2025-12-20", "dateModified": "2025-12-20", "url": "https://www.headstartdocs.com.au/tranche-2-resources/beneficial-owner-identification", "image": "https://www.headstartdocs.com.au/logo-512.png", "inLanguage": "en-AU", "isPartOf": { "@type": "WebSite", "name": "HeadStart Docs", "url": "https://www.headstartdocs.com.au" }, "about": { "@type": "Thing", "name": "AML/CTF Compliance", "description": "Anti-Money Laundering and Counter-Terrorism Financing compliance for Australian businesses under Tranche 2" }, "author": { "@type": "Organization", "name": "HeadStart Docs" }, "publisher": { "@type": "Organization", "name": "HeadStart Docs", "logo": { "@type": "ImageObject", "url": "https://www.headstartdocs.com.au/logo-512.png" } } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.headstartdocs.com.au/" }, { "@type": "ListItem", "position": 2, "name": "Free Resources", "item": "https://www.headstartdocs.com.au/tranche-2-resources" }, { "@type": "ListItem", "position": 3, "name": "Beneficial Owner Identification", "item": "https://www.headstartdocs.com.au/tranche-2-resources/beneficial-owner-identification" } ] } ] --- [Get Started ](/checkout) We use cookies to enhance your experience and analyse traffic. [Privacy Policy](/privacy) Essential OnlyAccept All [Skip to main content](#main-content) [ ![HeadStart Docs](/assets/logo-dark-bg-CUivuKJ8.png)![HeadStart Docs](/assets/logo-light-bg-D5BRMGqf.png) ](/) [Home ](/) Features [Programs ](/programs) Resources Sectors [Log in ](/auth) [Portal](/aml-landing) 1. [](/) - [Free Resources](/tranche-2-resources) - Beneficial Owner Identification ![Beneficial owner identification](/assets/tcsp-office-B8h9DKfm.jpg) [Back to Free Resources](/tranche-2-resources) 20 December 2025 • Beneficial Ownership # Identifying Beneficial Owners: Your Section 36 Obligation One of the most important AML/CTF obligations is identifying who really owns and controls your client. This is beneficial ownership identification - and it is mandatory under Section 36. Complex structures may trigger [enhanced due diligence](/tranche-2-resources/enhanced-due-diligence-triggers). ## What is a beneficial owner? A beneficial owner is a natural person (an individual human being) who ultimately: - **Owns more than 25%** of the client entity (through shares, units or other ownership interests) - **Controls more than 25%** of voting rights - **Exercises effective control** over the entity (even without ownership) ### The 25% Threshold The >25% threshold is the standard benchmark. Anyone holding more than 25% ownership or control must be identified. This applies to direct and indirect holdings through chains of ownership. ## Why beneficial ownership matters Money launderers often hide behind complex corporate structures - shell companies, trusts and nominees. Beneficial ownership identification pierces this veil to find the real person behind the client. When dealing with clients from [high-risk jurisdictions](/tranche-2-resources/foreign-buyers-high-risk-jurisdictions), this becomes even more critical. ## Different client types #### Companies (Pty Ltd) Identify shareholders holding >25% and directors who exercise effective control. Check ASIC extracts for current shareholdings. #### Trusts Identify trustees, appointors, beneficiaries with >25% entitlements and anyone who controls the trust. Obtain the trust deed. #### Partnerships Identify partners with >25% interest in the partnership profits or assets. Obtain partnership agreement. ## Verification steps 1. **Obtain ownership information:** Ask the client to provide details of all owners/controllers with >25% interest 2. **Verify the entity:** Check ASIC records for companies, obtain trust deeds for trusts 3. **Trace ownership chains:** If an owner is a company, identify that company's beneficial owners 4. **Identify individuals:** Keep tracing until you reach natural persons 5. **Verify identity:** Apply your standard CDD procedures to each beneficial owner identified. See [ongoing CDD requirements](/tranche-2-resources/ongoing-customer-due-diligence) for maintenance. ### What if no one holds 25%? If no single person holds more than 25% ownership/control, you must identify the senior managing official(s) who have effective day-to-day control of the entity. ## Documentation requirements You must keep records of: - The beneficial ownership enquiries you made - The responses received from the client - The verification steps taken - Copies of documents obtained (ASIC extracts, trust deeds etc.) - Identity verification for each beneficial owner ### Key Takeaway Section 36 requires you to look behind the entity and identify the real humans who own or control your client. Apply the >25% threshold, trace ownership chains to natural persons and document your verification steps. If no one meets the threshold, identify the senior managing officials. [Get Your Free AML/CTF Program Documents](/programs) [ Read our complete Tranche 2 Guide Key dates, affected sectors, obligations and how to prepare ](/tranche-2) **Disclaimer:** This article is general information only. It is not legal, financial or compliance advice. HeadStart Docs™ provides free compliance documents, not legal services. We do not guarantee the accuracy of information provided. Obligations may apply depending on your designated services. Always confirm your specific requirements with a qualified adviser. Need a lawyer to review your AML/CTF program? [HeadStart Counsel](https://headstartcounsel.com.au/get-started) offers fixed-fee tailoring from $1,800+GST. 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