A beneficial owner is always a natural person. A parent company’s name, a director’s signature or a register extract alone does not fully explain who ultimately owns or controls the client.
Identify both the person and the basis
Due diligence includes establishing the beneficial owner and taking measures to verify identity. For a legal entity or trust, establish its ownership and management structure too. A name is insufficient without the basis: shares, voting rights, economic entitlements or other decisive influence.
The Beneficial Ownership Register Act defines the relevant rules. A corporation may have several beneficial owners. The largest shareholder is not automatically the only one; control can exist through a smaller holding or other means.
The register and another source
Where the client must register in the Czech beneficial ownership register or an equivalent register in another EU or EEA state, Czech AML law requires verification using that register and at least one further source. Compare the extract with other information, such as constitutional documents, a documented ownership chart or a relevant register. A register in a third country does not automatically trigger the same statutory requirement; assess its usability and reliability as verification evidence.
The additional source must contribute to real verification. Displaying the same extract in another application adds no separate information. A client declaration can be a source, but assess its credibility and risk; it cannot conceal a visible contradiction.
Identity and ownership status differ
Identity verification establishes whether you have the correct person. Status verification establishes why that person is a beneficial owner. Neither proves the other: an identity document does not create ownership, and a shareholding entry may not adequately distinguish people with identical names.
Measures must be proportionate to risk; a beneficial owner is not automatically required to attend personally in the same way as a client undergoing initial identification. Record identity data, the method and sources, and separately establish PEP and sanctions status.
Resolve inconsistencies
If the extract names someone different from the documented structure, request an explanation and relevant change documents. Check for historical entries or mistaken identity. Correcting the register and completing AML due diligence are separate tasks.
Apply section 15a to discrepancies and section 15 where checks cannot be completed. Using senior management as a fallback has statutory conditions and is not a response to refusal to cooperate. The file must show how the conclusion was reached, not merely a final tick.
Practical steps
- Obtain the structure and identify all relevant natural persons.
- Determine the statutory basis for their status.
- Verify the register and at least one other source where registration duties apply.
- Verify identity proportionately and resolve discrepancies.
Illustrative scenario
A company has two direct shareholders holding 60% and 40%. The office verifies both, compares the beneficial ownership register with constitutional documents and checks for other control agreements.
When the situation differs
A client supplies the director’s name, which the office labels the sole beneficial owner without examining ownership or control.
What to document
- Each beneficial owner’s identity and basis of status.
- A current extract and a specific additional source.
- Structure diagram, conclusions and discrepancy resolution.
Common pitfalls
- Stopping at a legal entity in the chain.
- Using the extract as the sole source.
- Applying the senior-management fallback without meeting conditions.
Frequently asked questions
Is the beneficial owner always a director?
No. A director represents the company; ultimate ownership and control require separate assessment.
Must every beneficial owner attend personally?
Personal attendance is not automatically required for every owner. Take risk-appropriate measures to verify identity and status.
Put this guidance into practice
Choose a record for the step you are working on. Adapt it to your profession and actual case.
- Legal entity and beneficial owner information · PDF / Word
- Registered offices, formation and company services including shelf companies →
- Trustees and similar arrangements →
Complete client information online
Where to go next
- The closed public beneficial ownership register: obtaining an extract — Current access for obliged entities, client-supplied extracts and handling non-public beneficial ownership data.
- Beneficial owners of a simple Czech s.r.o. — Verify direct shareholders, the greater-than-25% threshold and other forms of decisive influence.
Sources and legal references
- Zákon č. 253/2008 Sb. — aktuální znění e-Sbírky ↗
§ 9 odst. 2 písm. b), c), odst. 3, 6, 7; § 15; § 15a · accessed 2026-10-04 - Zákon č. 37/2021 Sb. — aktuální znění e-Sbírky ↗
§ 2 písm. c); § 4–6 · accessed 2026-10-04 - FAÚ: Metodický pokyn č. 3 — zjišťování skutečného majitele ↗
Zjištění a ověření skutečného majitele, 25. 4. 2025 · accessed 2026-10-04
Editorial work and source checks are not independent legal approval of your particular process. Compare the conditions and exceptions with your own circumstances.