Austrac has issued customer identification and beneficial ownership requirements for a strata title owners corporation (also known as body corporate or owners corporation).
It also provides the relevant provisions of the Rules to refer to if beneficial owners cannot be determined using the standard criteria.
Austrac says that unless the strata corporation is a company registered with ASIC, it should be treated as an association for the purposes of customer and beneficial ownership identification.
To identify a strata corporation that is registered as a company with ASIC, the Rules in relation to companies in Part 4.3 should be applied.
To identify a strata corporation not registered as a company with ASIC, the Rules in relation to associations in Part 4.6 should be applied.
To correctly identify beneficial owners, the Rules in Part 4.12 should be applied.
If you are unable to determine the identity of a beneficial owner, the Rules in Part 4.12.9 for either a company (if registered with ASIC) or an association, whichever is relevant, should be applied. This allows you to identify and verify, for the purposes of complying with Part 4.12, any individual:
*who is entitled to exercise 25% or more of the voting rights; or
*who holds the position of senior managing official (or equivalent); or
*who would be entitled on dissolution to 25% or more of the property (in the case of an association). Senior managing officials are likely to include the presiding officer, secretary or treasurer (however named) of the strata corporation.
The strata corporation can provide identification documents in addition to documentation that record or support the individual’s position, such as the minutes from the meeting where the managing official was elected, or any other documentation that demonstrates the authority of the individual.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
