What is an ultimate beneficial owner?

The Ultimate Beneficial Owner (UBO) is the natural person who ultimately owns or controls an entity, typically defined as holding 25% or more of shares or voting rights, or exercising control through other means. UBO identification is synonymous with beneficial ownership identification and is a mandatory component of CDD for entity customers.

Identifying UBOs

For simple ownership structures, UBO identification is straightforward. Complex structures involving multiple layers of entities, trusts, and nominee arrangements require deeper investigation. TCSPs creating or managing such structures have a particular responsibility to ensure UBOs are identified and screened against sanctions lists.

The EU AML framework requires UBO information to be held in centralised registers and verified by regulated businesses as part of their KYB process.

Related terms