Handling Nominee Arrangements in Proofdesk

Understanding Nominee Arrangements

When dealing with nominee arrangements in Proofdesk, it's important to separate the existence of a nominee from the true ownership trail. This ensures a clean and accurate beneficial ownership chain, especially for AML and beneficial ownership purposes.

Recording Nominee and Actual Shareholders

Within the entity's Structure Form, you should record two linked entities:

• Nominee Shareholder: Use the "Nominee Shareholder" role from the dropdown.

• Actual Shareholder: Use the "Shareholder" role from the dropdown.

This method allows you to acknowledge the nominee's presence while maintaining a clear ownership chain.

Avoiding Common Pitfalls

Avoid linking the actual shareholder as a linked entity of the nominee. This is not technically correct and will cause issues, especially if the nominee is used for multiple clients, as they do not actually own the nominee.