Identify the correct company
KYB means know your business, an industry label for business customer checks. Identify the company that receives the designated service. A group brand can name several entities.
Rules 6-2 applies when the reporting entity proposes the service at or through its Australian permanent establishment. It specifies minimum company information.
This includes names, any unique identifier, relevant addresses, existence, governing powers and responsible individuals. Include applicable director identification numbers.
Sources: Federal Register of Legislation: Section 6-2(1) to (4); Federal Register of Legislation: Section 28(2) to (3); Holley Nethercote, hosted by the Institute of Public Accountants: Pages 5 to 6, provider categories.
- Which legal customer?
Separate the entity receiving the service from its group brand.
- Who can act?
Establish the authority of the person giving instructions.
- Who owns or controls it?
Identify the relevant ownership and control information.
- What is the business and purpose?
Understand the business and the nature and purpose of the relationship.
Four questions about a company customer
These are separate evidence questions. One company search does not necessarily answer them all. Apply the relevant Act and Rules requirements.
Separate evidence questions. An answer to one does not settle the others.
Keep the evidence questions separate
Company existence, authority, beneficial ownership and service purpose are different matters. Rules 6-2 also requires ownership and control information and the nature of business or operations.
Initial CDD means initial customer due diligence. Section 28 sets its wider requirements, subject to the applicable Rules and exceptions.
A registry record does not prove that every instruction is authorised. Use risk-appropriate verification and examine whether a specific modified measure applies.
Sources: Federal Register of Legislation: Section 6-2(1) to (4); Federal Register of Legislation: Section 28(2) to (3).
Invented example: a group brand
A customer uses a group brand. The engagement names one subsidiary, the bank details name another, and a contact signs for the parent.
The reviewer identifies the intended customer and each entity’s role. The reviewer then examines the relevant authority and ownership evidence.
These differences can have an ordinary explanation. The example does not classify every group arrangement as high risk.
Sources: Federal Register of Legislation: Section 6-2(1) to (4); Federal Register of Legislation: Section 28(2) to (3).
Make the file easy to follow
Label evidence of existence separately from evidence of authority. Connect the ownership conclusion to its sources. Record the purpose of the service.
If records disagree, explain how the reviewer resolved the difference. If a requirement does not apply, record the reason.
This is a suggested file structure. It does not confirm compliance.
Sources: Federal Register of Legislation: Section 6-2(1) to (4); Federal Register of Legislation: Section 28(2) to (3).