Understanding the details of the ownership structure and executive team of a company is extremely important in helping to maintain compliance with Know Your Customer and Ultimate Beneficial Owner requirements, as well as, in helping to understand the potential risk or fraud signals about that entity.
When an entity is formed with the state, there will commonly be a record of the individuals that are associated with the formation of that business. The exact roles that individuals hold can change based on the entity structure, but the most common individuals that are associated with an entity are as follows:
Usually the legally recognized highest rank of corporate officer
Responsible for accounting and handles corporate funds
Handles corporate records and may also handle corporate stock and the stock transfer book
The formal name for an LLC owner
The only one (or one in a few) managing business operations
An individual or corporation, who may or may not be part of the business entity, who is designated to receive correspondence from the Secretary of State.
While there is no single source to capture all officer information for private companies in the US, Middesk provides an aggregate list of individuals and corporations associated with each business based on data acquired from a variety of sources.
There are a variety of ways to leverage the consolidated list of people, which include validation of Beneficial Owners, Signatories, and other workflows that may require developing a linkage between the individual that is applying on behalf of a business and the business entity itself.
Updated about 2 years ago