AML Due Diligence: Identifying & Verifying Corporate Entities & Beneficial Owners

Introduction

Under the Money Laundering Regulations 2017 (MLR), regulated firms must identify and verify the beneficial owners of corporate customers and understand who ultimately owns and controls them. Where they are unable to do so, they must not proceed.

The consequences of getting this wrong are significant. Breaches of the MLRs can lead to civil penalties, public censure and, in serious cases, criminal prosecution of firms and individuals.

Failing to identify a beneficial owner can also expose a firm to offences under the Proceeds of Crime Act 2002, including the regulated-sector offence of failing to disclose knowledge or suspicion of money laundering. The 2026 amendments place greater weight on firms’ own documented risk judgements, while Companies House identity verification has improved the register without removing the duty to verify independently.

This session sets out what the law requires and how to apply it in practice, so that every decision you make on a corporate customer is one you can defend to a supervisor.

What You Will Learn

By the end of this live and interactive course, you will be able to:

• Explain the legal obligations and how the requirements of the Money Laundering Regulations 2017 apply to corporate customers, including the 2026 amendments
• Apply the definitions and recognise the statutory definition of a beneficial owner, including the more than 25% threshold and control by other means
• Map ownership structures and understand how to trace multi-layered ownership chains
• Calculate indirect interests and spot structures designed to stay just under the threshold
• Identify hidden control such as nominee arrangements, shareholder agreements and powers of attorney
• Understand the PSC regime and Companies House identity verification and why the register can’t be relied on alone
• Understand what to verify and how to choose evidence proportionate to risk
• Recognise corporate red flags and the customer, geographic, product and channel risk factors
• Know when enhanced due diligence is mandatory and when it is a risk-based judgement, including source of wealth and source of funds checks
• Understand how ownership and control link to UK and US sanctions risk and when to escalate
• Know the limits of the senior managing official option and what records it requires
• Understand how to handle ongoing monitoring, record-keeping, discrepancy reporting and internal suspicion reporting, without tipping off
• Reach and document defensible decisions

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.