A foreign-owned Pty Ltd can open an Australian business bank account, but expect more questions than a locally owned company gets. Australian banks are reporting entities under the AML/CTF laws. Before they provide an account, they must establish the company's identity, who acts for it, every individual who ultimately owns or controls it, and what the account is for. Each bank decides how to meet those obligations, so document lists, in-person requirements and timeframes vary from bank to bank.
This guide covers the part that is common to every bank: what the law requires them to establish, and how to put together a file that answers it the first time.
Why the bank asks so much
AUSTRAC's guidance on initial customer due diligence says a reporting entity must complete initial CDD before it starts providing a designated service. If it can't establish the required matters on reasonable grounds, it must not start providing the service. "Reasonable grounds" is an objective test, and the bank must keep a record of how it established each matter.
So a bank that can't trace your ownership isn't being difficult. It's legally prevented from opening the account.
AUSTRAC also explains why companies get extra attention: its 2024 national money laundering risk assessment rated legal structures and bodies corporate as a high money-laundering risk. AUSTRAC adds that this doesn't make every company a high-risk customer. A clear, well-documented structure is what moves you into the ordinary category.
What every bank must establish about your company
AUSTRAC's guide for body corporate customers lists the matters:
| Matter | What it means for a foreign-owned Pty Ltd |
|---|---|
| Identity of the customer | Full ASIC name, ACN (or ABN), any business names, principal place of business, registered office |
| People acting on its behalf | Everyone who will open or operate the account, and their authority to act |
| Beneficial owners | Every individual who owns 25% or more, directly or indirectly, or who controls the company |
| PEP and sanctions status | Whether any of those people is a politically exposed person or designated for targeted financial sanctions |
| Nature and purpose | What the company does and why it wants the account |
The guidance also says the bank collects the names of the people responsible for governance, meaning the board, and any director identification numbers. Every director, including those overseas, needs a Director ID before appointment anyway. See our Director ID guide for foreign directors.
Beneficial ownership: the step that stalls most applications
AUSTRAC defines a beneficial owner as an individual who directly or indirectly owns 25% or more of the customer, or controls it (ownership and control guidance). Where there's a chain of companies, the bank must follow it until it reaches the individuals.
Say an Australian Pty Ltd is owned by a Singapore holding company, which is 60% owned by a Cayman fund and 40% by a founder. The bank will want the founder, then the individuals behind the fund (or a reason the fund's ownership can be treated differently), plus anyone who controls the group through voting rights or board appointments. "Owned by our parent" doesn't answer the question.
Control counts as well as shares. AUSTRAC describes control as the ability to influence or direct decision-making, whether formally through ownership and voting rights or informally. A founder with 10% and a casting vote, or veto rights in a shareholders' agreement, may still be a beneficial owner.
The tax residency form you'll also be asked for
Separately from AML/CTF, Australian banks are reporting financial institutions under the Common Reporting Standard and FATCA. The ATO's due diligence guidance says that for every new entity account, the bank must work out whether the account holder is reportable. If the entity is a passive non-financial entity, the bank must look through to its controlling persons. In practice, expect a self-certification form asking for the company's tax residency and, sometimes, the tax residencies of its controlling persons. Your accountant can help you classify the company correctly.
Build the file before you apply
Every bank's checklist differs, but these items answer the matters above and are worth having ready:
- ASIC company extract and certificate of registration, showing the exact registered name and ACN.
- Constitution, or confirmation that the company uses the replaceable rules.
- Group structure chart down to the individuals, with percentages, signed by a director.
- Registers or extracts for each holding company in the chain, from the registry in its home country.
- Identity documents for each director, signatory and beneficial owner. If they are overseas, certified copies are usually needed. Certification by a notary in their own country is common, and documents not in English need a certified translation. Confirm what the bank will accept before paying for certification.
- Board resolution authorising the account and naming the signatories.
- One-page business description: what the company sells, to whom, the expected monthly volumes, and where funds will come from (for example, intercompany funding from the parent).
- Director IDs for every director.
A mismatch between documents is the most common cause of delay. The name on the structure chart, the ASIC extract and the board resolution should be identical, including "Pty Ltd" against "Proprietary Limited".
Four things that slow applications down
- Trusts or funds in the chain without documents showing who controls them. AUSTRAC has separate CDD guidance for trusts, so the bank may need to identify the trust's controllers as well as the company's.
- Nominee shareholders where the true owner isn't named. AUSTRAC's test looks through to the individual, so disclose the arrangement and the person behind it.
- A vague purpose. "General trading" invites follow-up. Name the products, customers and countries involved.
- A changing board. If you're replacing a director mid-application, finish the ASIC change first so the extract matches what you've told the bank.
When checks go deeper
AUSTRAC's guidance requires banks to establish the source of funds and source of wealth of foreign PEPs and high-risk domestic or international organisation PEPs, and of other customers where enhanced CDD applies and it's relevant to their risk. If a shareholder or director holds, or has held, a senior public role in any country, say so up front and have evidence of where their wealth came from. Owners connected with higher-risk jurisdictions should expect similar questions.
Where it fits in the setup sequence
The usual order is: register the company with ASIC, appoint directors (including the resident director), register for an ABN and tax, then open the account. Whether a bank will start before the ABN issues is its own call, so ask. Our guides on registering a company as a foreigner and ABN and TFN registration cover the earlier steps, and the setup timeline tool shows how they overlap.
Banking checks don't stop at onboarding. Banks have ongoing due diligence obligations, so tell them when ownership or directors change.
The resident director's role
Ownership, banking and commercial decisions stay with the owners. Our director isn't a bank signatory by default. Some banks ask to meet or identify the resident director when an account is opened, and we'll support that. Our Governance Partner package includes bank account opening support and signatory coordination, and on other packages we help on request. Our own onboarding runs a similar identity and ownership check, so most of the bank file will already be in hand. See pricing for what each package includes.
This is general information only, current at 27 October 2026, and is not legal, tax or financial advice. Each bank sets its own requirements, so confirm them directly with the bank.
Frequently asked questions
Can we open the account before the company has an ABN?
That depends on the bank. AUSTRAC guidance treats the ACN or ABN as the company's unique identifier, so the law doesn't demand an ABN as such. Banks set their own product rules, though, so ask before you apply and register for an ABN first if the bank wants one.
Does our resident director have to be a signatory?
No. Who signs is a board decision. Our director is not a signatory by default, although some banks ask to identify the resident director as part of their checks.
Why does the bank want to know who owns our parent company?
Banks must identify every individual who ultimately owns 25% or more of the company, or controls it, and they have to follow the chain through each holding company to get there. A parent company's name is not the end of the enquiry.
Can a foreign parent's existing bank open the Australian account?
Some international banks operate in Australia, and group relationships can help. The Australian entity is still a new customer, though, and has to pass the Australian checks in its own right.
The bank declined us. What now?
Ask what was missing, fix it and reapply, or try another bank. A refusal often comes down to an unclear ownership chain or a vague description of the business.
Official sources
- AUSTRAC: Overview of initial customer due diligence austrac.gov.au
- AUSTRAC: Initial CDD for body corporate, partnership or unincorporated association austrac.gov.au
- AUSTRAC: Determining ownership and control structures austrac.gov.au
- ATO: CRS and FATCA due diligence ato.gov.au
Checked against these sources on . Fees, thresholds and forms change: confirm with the source before you lodge.
General information about Australian law and practice, not legal or tax advice for your circumstances. Check the official sources, or ask your adviser, before you act.