Understanding the complexity of the corporate or legal structure of your client is a crucial part of KYC. This page aims to describe how you can use the KYC Suite to keep track of this structure.
Page Contents
Legal and ownership structure
In the KYC Suite we distinguish between two structures:
Legal structure
The structure of how a party or product is legally represented.
Ownership structure
The structure of how a party or product is owned.
An overview of the structure can be found in the Client File for every party or product. The structure as viewed from the product only supports viewing all incoming connections. The structure as viewed from any party supports viewing the complete structure of connections, both incoming as well as outgoing connections.
Structure example
In the following structure, both structures are shown simultaneously.
By selecting "Show representation" the view will be limited to showing the legal representation structure.
By selecting "Show ownership" the view will be limited to showing only the ownership structure.
Connection types
In the KYC Suite we support two types of connections, ownership and legal representation. Depending on the connection type, a connection can exist between two parties in the Client File.
A connection exists only between two parties and has a direction.
For example: A UBO owns a company. A company is owned by a UBO. Here "owns" and "owned by" describe the direction of the ownership connection.
Representation
A party "represents" or is "represented by" another party.
Currently the KYC Suite supports representing a legal entity, a natural person representing a joint account or a natural person representing a child.
Ownership
A party "owns" or is "owned by" another party.
Legal entities and joint accounts can be owned. A natural person can never be owned.
An ownership can have the attribute "ownership percentage", which may be used to specify the size of the share.
Editing connections
Once a party exists in the Client File, their connections can be edited.
Note: Editing the connections can be done from the connections screen of a party, not from the legal structure view of a product.
Adding connections
New connections can be added between existing parties in the Client File. If you want to add a connection to a party that does not yet exist in the Client File you may first add the party to the Client File, for example via the onboarding process or the import functionality.
Example scenario's
Adding a second representative to a child;
Adding a new UBO to a legal entity.
Note: We currently do not support adding connections for joint accounts.
Removing connections
Existing connections can be removed. When starting the removal, a task will be created. This task requires a review of a person with sufficient permissions to remove connections in the Client File.
Only one connection can be removed at a time. We understand this may pose to be a tedious process. Please let us know if you value having this process optimised, so that we are aware that this is desired functionality.
An audit trail is being kept and can be found...
... on the Activity log for the party whose connection has been removed;
... on the page Tasks, where a list can be made of all tasks with changes to connections.
Editing ownership percentage
Editing the ownership percentage is possible simply by going to the connections tab and scrolling down to view the connections table. Click the pencil icon in the connections table to change the value of an ownership percentage. It is also possible to remove the current percentage by emptying it.
Note: There is no check to make sure the percentages add up to 100%, so you are free to allocate the shares according to your own best knowledge.