Most company managers have spent years maintaining beneficial ownership registers (BORs), and for many the process has become routine. Yet under the new Beneficial Ownership Transparency Act, 2023, the expectations have shifted from simply “having a register” to being able to demonstrate control over its accuracy, timeliness, and audit trail.

The legislation isn’t new, but our collective experience in applying it is. The real learning lies in spotting where registers fall short in practice and building processes that keep them current and defensible.

#1 Registers are often “formally correct” but practically out of date

Many BORs technically comply: they exist, include all prescribed particulars, and are accessible. But too often they have not been touched since onboarding.

The 30-day change-notification rule under the Act means every new share issue, redemption, or board change has potential downstream impact. Relying on clients to remember to notify you rarely works.

Tips for Better Practice:

• Build the register review into your annual client confirmation process.
• Implement automatic cross-checks with your corporate registry data: if shares are transferred, the BOR should update automatically or trigger an alert.
• Record when you last verified each beneficial owner’s details, not just what the details are.

#2 Verification is treated as a tick-box exercise

The new regime implicitly raises the standard for verification. It is no longer sufficient to collect an ID and store it; managers must be able to show that they took “reasonable steps” to confirm that the person named is indeed the one exercising ownership or control.

Tips for Better Practice:

• Record how verification was done (source documents, independent checks, or reliance on another regulated intermediary).
• Ensure the register identifies not just ownership percentage but the nature of control (e.g., appointment rights, veto powers).
• When no registrable beneficial owner is identifiable, ensure the fallback to the senior managing official is properly documented and supported.

#3 Change events fall through the cracks

Transfers of shares, new partners, or amendments to foundation governance often happen outside the view of the company manager, especially when clients handle their own legal documentation. The result: a register that is outdated by months.

Tips for Better Practice:

• Make beneficial ownership updates a standing agenda item at each board meeting or annual review.
• Establish a standard change-notification form and require client confirmation that no relevant change has occurred since the last submission.

#4 Record-keeping and evidence trails are thin

When the competent authority requests information, the question is not only what is on the register, but how you got there. Firms often lack contemporaneous notes showing why certain individuals were recorded (or not recorded).

Tips for Better Practice:

• Keep a “BOR verification sheet” or audit log for each entity, showing the date of verification, the verifier’s name, the documents reviewed, and any assumptions made.
• Store supporting documentation in a structured, retrievable format.
• Implement periodic internal audits of a random sample of registers; document any discrepancies found and how they were corrected.
• Be prepared for non-cooperative clients and have an action plan in place for escalation, including the issuance of a restrictions notice where appropriate.
• Maintain a register-management policy internally: it should outline verification standards, change-event handling, and escalation steps.

#5 Final Thought

The beneficial ownership register has evolved from a compliance formality into a real test of governance discipline. Firms that treat the register as a living record, one that is continuously verified, reviewed, and supported by evidence, will find it reinforces both client trust and regulatory confidence. The challenge now is not just to maintain accuracy, but to build a framework that proves it. In that sense, control over the register has become as important as the register itself.