Owners & representatives

EU’s 4th AML directive requires screening of beneficial owners of company clients. If beneficial owners are not known – the company’s representatives should be checked. InstantWatch KYC and InstantWatch AML can now retrieve beneficial owners and representatives of Swedish and Norwegian company clients, keep them updated and screened daily against sanctions and PEP lists.

Owners and representatives of Swedish companies, already available

The InstantWatch KYC service is already used for retrieval of owners and representatives of Swedish and Norwegian companies and organisations. The lists in InstantWatch KYC save a lot of work for banks and financial firms compared to asking company clients about beneficial owners, and to verify the answers.

Some short facts about the list of owners and representatives:

  • Information of all legal owners behind 50,000 Swedish unlisted limited liability companies with a turnover > SEK 10 million or a certain size of equity or subsidiaries with significant minority shareholders.
  • Information of all legal owners behind all Norwegian unlisted limited liability companies
  • For smaller Swedish companies, we estimate that future availability of beneficial owners will be sufficient.
  • All representatives from Swedish and Norwegian companies and associations.
  • A complete picture of both the board and owners, when onboarding and daily.

InstantWatch KYC – an internet based service

Screening of clients can be done in several different ways. A prospective client can be screened using the web browser interface. It is easy to integrate other systems to the InstantWatch KYC web service interface. KYC-screenings of a client can be done in real time, for example in an automatic onboarding process and from payment services or for screening of the full client base in a batch.

InstantWatch AML – fetches owners and representatives automatically

Trapets full AML/CTF service, InstantWatch AML, is integrated with the KYC service and screens the client base in a batch every night automatically. Owners and representatives are fetched from the KYC service and can be added to the client database with special customer types. Owners and representatives will thus automatically be screened against sanctions and PEP lists and any hits will generate an alert.

Upcoming registers of beneficial owners and representatives

The Fourth EU AML Directive enacts new rules on beneficial ownership identification and recordkeeping requirements regarding ultimate beneficial ownership. This means that lists of beneficial ownerships will be set up in every member state. The lists will contain records of ultimate beneficial ownership reported by the obliged entities in that state. The lists will hopefully be available during 2018. Trapets’ KYC service will include these lists as well when they become available.