Business Articles – Identifying a Business’s Ultimate Beneficial Owner (UBO)

Business Articles – Identifying a Business’s Ultimate Beneficial Owner (UBO)

by RICHARD CONARD

Identifying a business’s ultimate beneficial owner (UBO) is a legal and regulatory requirement to ensure an organization that does not participate in financial crime. It is like Know Your Customer but focuses on the ultimate beneficial owner of a business. The UBO controls at least 25% of a business. The UBO must undergo a Know Your Customer (KYC) check, which compares their identity against terrorism financing watchlists, sanctions lists, and other databases.

The ultimate beneficial owner (UBO) must significantly influence a company. In other words, they must hold a minimum of ten to twenty-five percent of the company’s capital or voting rights. This threshold avoids potential negative fallout if the business is involved in illegal activities, such as money laundering, fraud, and sanction evasion.

https://www.amazines.com/Business/article_detail.cfm/6264286?articleid=6264286

Source: veteran-owned