A related party is any person or entity that has control, ownership, or a significant influence over a customer or entity involved in a transaction. Caruso uses this definition to help determine who must complete Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.
To learn how to create or manage related parties in Caruso, see our step-by-step guide: Create and Manage Related Parties.
Who Qualifies as a Related Party?
A person is considered a related party if they:
Have effective control of an entity, or of the person on whose behalf a transaction is being conducted; or
Own more than 25% of the entity or customer involved in the transaction.
If you are investing in your own name as an individual, you are typically the related party. For companies, trusts, or partnerships, there may be several related parties.
Example: Complex Company Structure
Consider a company with the following setup:
Two shareholders each own more than 25% of the available shares
One shareholder is a trust with a corporate trustee
The other shareholder is an individual who is also a director
The company also has an independent director
In this scenario, all individuals highlighted in green are considered related parties of the company and each would be required to complete AML/KYC verification.
Verifying Related Parties in Caruso
Caruso makes it quick and simple to verify related parties:
Verification is completed online and usually takes less than two minutes.
Related parties receive an email or text message with a secure link to start their verification.
Once verified, their details are automatically linked to the relevant realted party.
If you have any questions or need help at any stage, please contact our Caruso Support team either by email or live chat.