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Optimization Protection

Collect indirect ownership information

Indirect ownership refers to a scenario where an individual or entity owns a stake in a business not directly, but through one or more intermediary entities. In other words, the ownership is held via a chain of entities, rather than a direct, first-layer relationship with the business. 

The following illustration shows an indirect ownership structure. Collect all entities and individuals marked in blue.

Indirect Ownership

Ownership information to collect

For the business to be onboarded, collect the following individual or entities from their ownership chain:

  • Individual beneficial owners who own, directly or indirectly, 25% or more of the business to be onboarded.
  • Intermediary owners (entities in the ownership chain) who own, directly or indirectly, 25% or more of the business to be onboarded.

Collect the following information for an Intermediary owner:

Required fields for intermediary owner
Fields Required value
partyType ORGANIZATION.
roles

INTERMEDIARY_OWNER.
organizationType                           The legal classification of the entity.
organizationName The legal name of the entity.
organizationIds The government-issued ID. Required details: idType, value, and the issuer.
countryOfFormation The country in which the entity was formed or domiciled.
addresses The legal business address of the entity.
natureOfOwnership Direct, if directly associated with the business to be onboarded; Indirect, if not directly associated.

How it works

You can create an indirect ownership structure using one of the following approaches:

Two step approach

Step 1: Create client

Send a POST request to the /clients endpoint to create the business entity to be onboarded, the controller, and individuals or entities of direct ownership in a single API call.

Method: POST

Endpoint: /clients

Scenario: Sample step one request for the two step approach.

Json
{
  "parties": [
    {
      "partyType": "ORGANIZATION",
      "roles": [
        "CLIENT"
      ],
      "organizationDetails": {
        "organizationType": "C_CORPORATION",
        "organizationName": "Central Park Coffees & Cookies",
        "addresses": [
          {
            "addressType": "BUSINESS_ADDRESS",
            "addressLines": [
              "123 Central St"
            ],
            "city": "Palo Alto",
            "state": "CA",
            "postalCode": "94303",
            "country": "US"
          }
        ],
        "yearOfFormation": "1984",
        "countryOfFormation": "US",
        "dbaName": "Central Park Coffee",
        "naics": "334416",
        "organizationDescription": "We bake fresh cookies and coffee for everyday breakfast needs.",
        "phone": {
          "phoneType": "BUSINESS_PHONE",
          "phoneNumber": "6502694433",
          "countryCode": "+1"
        },
        "organizationIds": [
          {
            "idType": "EIN",
            "value": " 184102294",
            "issuer": "US"
          }
        ]
      }
    },
    {
      "partyType": "ORGANIZATION",
      "roles": [
        "INTERMEDIARY_OWNER"
      ],
      "organizationDetails": {
        "organizationType": "C_CORPORATION",
        "organizationName": "Central Park Cookie",
        "addresses": [
          {
            "addressType": "LEGAL_ADDRESS",
            "addressLines": [
              "124 Central Se"
            ],
            "city": "Palo Alto",
            "state": "CA",
            "postalCode": "94303",
            "country": "US"
          }
        ],
        "countryOfFormation": "US",
        "natureOfOwnership": "Direct",
        "organizationIds": [
          {
            "idType": "EIN",
            "value": " 050110294",
            "issuer": "US"
          }
        ]
      }
    },
    {
      "partyType": "INDIVIDUAL",
      "roles": [
        "CONTROLLER"
      ],
      "email": "foobar@example.com",
      "individualDetails": {
        "firstName": "Chandler",
        "lastName": "Bing",
        "birthDate": "2001-01-01",
        "addresses": [
          {
            "addressType": "RESIDENTIAL_ADDRESS",
            "addressLines": [
              "124 Candy St"
            ],
            "city": "Palo Alto",
            "state": "CA",
            "postalCode": "94303",
            "country": "US"
          }
        ],
        "countryOfResidence": "US",
        "individualIds": [
          {
            "idType": "SSN",
            "value": " 437381498",
            "issuer": "US"
          }
        ]
      }
    },
    {
      "partyType": "INDIVIDUAL",
      "roles": [
        "BENEFICIAL_OWNER"
      ],
      "individualDetails": {
        "firstName": "Monica",
        "lastName": "Geller",
        "birthDate": "2000-10-01",
        "addresses": [
          {
            "addressType": "RESIDENTIAL_ADDRESS",
            "addressLines": [
              "125 Candy St"
            ],
            "city": "Palo Alto",
            "state": "CA",
            "postalCode": "94303",
            "country": "US"
          }
        ],
        "countryOfResidence": "US",
        "natureOfOwnership": "Direct",
        "individualIds": [
          {
            "idType": "SSN",
            "value": " 050110337",
            "issuer": "US"
          }
        ]
      }
    }
  ],
  "products": [
    "EMBEDDED_PAYMENTS"
  ]
}

Step 2: Create parties – indirect owners

Send a POST request to the /parties endpoint to create each individual or entity of indirect ownership in a separate API call. For each party, populate the immediate parent’s ID in the parentPartyId field. Obtain the value from Step 1. Repeat this step for each layer in the ownership chain.

Method: POST

Endpoint: /parties

Scenario: Sample step two request for the two step approach with ORGANIZATION partyType and Indirect natureOfOwnership.

Json
{
  "partyType": "ORGANIZATION",
  "parentPartyId": "2001483190",
  "roles": [
    "INTERMEDIARY_OWNER"
  ],
  "organizationDetails": {
    "organizationType": "C_CORPORATION",
    "organizationName": "Cookie Co.",
    "addresses": [
      {
        "addressType": "LEGAL_ADDRESS",
        "addressLines": [
          "124 Central Se"
        ],
        "city": "Palo Alto",
        "state": "CA",
        "postalCode": "94303",
        "country": "US"
      }
    ],
    "countryOfFormation": "US",
    "natureOfOwnership": "Indirect",
    "organizationIds": [
      {
        "idType": "EIN",
        "value": " 134994650",
        "issuer": "US"
      }
    ]
  }
}

Method: POST

Endpoint: /parties

Scenario: Sample step two request for the two step approach with INDIVIDUAL partyType and Indirect natureOfOwnership.

Json
{
  "partyType": "INDIVIDUAL",
  "parentPartyId": "2001472558",
  "roles": [
    "BENEFICIAL_OWNER"
  ],
  "individualDetails": {
    "firstName": "Rachel",
    "lastName": "Green",
    "birthDate": "1999-01-01",
    "addresses": [
      {
        "addressType": "RESIDENTIAL_ADDRESS",
        "addressLines": [
          "125 Candy St2"
        ],
        "city": "Palo Alto",
        "state": "CA",
        "postalCode": "94303",
        "country": "US"
      }
    ],
    "countryOfResidence": "US",
    "natureOfOwnership": "Indirect",
    "individualIds": [
      {
        "idType": "SSN",
        "value": " 214994652",
        "issuer": "US"
      }
    ]
  }
}

Multi-step approach

Step 1: Create client

Send a POST request to the /clients endpoint to create the business entity for onboarding.

Method: POST

Endpoint: /clients

Scenario: Sample step one request for the multi-step approach.

Json
{
  "partyType": "ORGANIZATION",
  "roles": [
    "CLIENT"
  ],
  "organizationDetails": {
    "organizationType": "C_CORPORATION",
    "organizationName": "Central Park Coffees & Cookies",
    "addresses": [
      {
        "addressType": "BUSINESS_ADDRESS",
        "addressLines": [
          "123 Central St"
        ],
        "city": "Palo Alto",
        "state": "CA",
        "postalCode": "94303",
        "country": "US"
      }
    ],
    "countryOfFormation": "US",
    "dbaName": "Central Park Coffees & Cookies",
    "naics": "334416",
    "organizationDescription": "We bake fresh cookies and coffee for everyday breakfast needs.",
    "organizationIds": [
      {
        "idType": "EIN",
        "value": "184102294",
        "issuer": "US"
      }
    ]
  },
  "products": [
    "EMBEDDED_PAYMENTS"
  ]
}

Step 2: Create parties – direct owners

Send a POST request to the /parties endpoint to create each individual or entity of direct ownership in a separate API call. For each party, populate the immediate parent’s ID in the parentPartyId field.

Method: POST

Endpoint: /parties

Scenario: Sample step two request for the multi-step approach with ORGANIZATION partyType and Direct natureOfOwnership.

Json
{
  "partyType": "ORGANIZATION",
  "roles": [
    "INTERMEDIARY_OWNER"
  ],
  "organizationDetails": {
    "organizationType": "C_CORPORATION",
    "organizationName": "Central Park Cookie",
    "addresses": [
      {
        "addressType": "LEGAL_ADDRESS",
        "addressLines": [
          "124 Central Se"
        ],
        "city": "Palo Alto",
        "state": "CA",
        "postalCode": "94303",
        "country": "US"
      }
    ],
    "countryOfFormation": "US",
    "natureOfOwnership": "Direct",
    "organizationIds": [
      {
        "idType": "EIN",
        "value": "050110294",
        "issuer": "US"
      }
    ]
  }
}

Method: POST

Endpoint: /parties

Scenario: Sample step two request for the multi-step approach with INDIVIDUAL partyType and Direct natureOfOwnership.

Json
{
  "partyType": "INDIVIDUAL",
  "parentPartyId": "2001483191",
  "roles": [
    "BENEFICIAL_OWNER"
  ],
  "individualDetails": {
    "firstName": " Monica",
    "lastName": "Geller",
    "birthDate": "2000-10-01",
    "addresses": [
      {
        "addressType": "RESIDENTIAL_ADDRESS",
        "addressLines": [
          "125 Candy St"
        ],
        "city": "Palo Alto",
        "state": "CA",
        "postalCode": "94303",
        "country": "US"
      }
    ],
    "countryOfResidence": "US",
    "natureOfOwnership": "Direct",
    "individualIds": [
      {
        "idType": "SSN",
        "value": "050110337",
        "issuer": "US"
      }
    ]
  }
}

Step 3: Create parties – indirect owners

Send a POST request to the /parties endpoint to create each individual or entity of indirect ownership in a separate API call. For each party, populate the immediate parent’s ID in the parentPartyId field.

Method: POST

Endpoint: /parties

Scenario: Sample step three request for the multi-step approach with ORGANIZATION partyType and Indirect natureOfOwnership.

Json
{
  "partyType": "ORGANIZATION",
  "parentPartyId": "2001483190",
  "roles": [
    "INTERMEDIARY_OWNER"
  ],
  "organizationDetails": {
    "organizationType": "C_CORPORATION",
    "organizationName": "Cookie Co.",
    "addresses": [
      {
        "addressType": "LEGAL_ADDRESS",
        "addressLines": [
          "124 Central Se"
        ],
        "city": "Palo Alto",
        "state": "CA",
        "postalCode": "94303",
        "country": "US"
      }
    ],
    "countryOfFormation": "US",
    "natureOfOwnership": "Indirect",
    "organizationIds": [
      {
        "idType": "EIN",
        "value": "134994650",
        "issuer": "US"
      }
    ]
  }
}

Method: POST

Endpoint: /parties

Scenario: Sample step three request for the multi-step approach with INDIVIDUAL partyType and Indirect natureOfOwnership.

Json
{
  "partyType": "INDIVIDUAL",
  "parentPartyId": "2001483191",
  "roles": [
    "BENEFICIAL_OWNER"
  ],
  "individualDetails": {
    "firstName": "Rachel",
    "lastName": "Green",
    "birthDate": "1999-01-01",
    "addresses": [
      {
        "addressType": "RESIDENTIAL_ADDRESS",
        "addressLines": [
          "125 Candy St2"
        ],
        "city": "Palo Alto",
        "state": "CA",
        "postalCode": "94303",
        "country": "US"
      }
    ],
    "countryOfResidence": "US",
    "natureOfOwnership": "Indirect",
    "individualIds": [
      {
        "idType": "SSN",
        "value": "214994652",
        "issuer": "US"
      }
    ]
  }
}