Exposing Ultimate Beneficial Owners (UBOs)
Financial institutions must know who they are doing business with.
Identifying ownership is an essential requirement for meeting anti-money laundering (AML) and know your customer (KYC) regulations. But ultimate beneficial owners (UBOs) and their use of shell companies and complex ownership structures can make this process difficult.
A UBO is any individual that holds 10–25% or more (depending on jurisdiction) of a company’s shares or voting rights and who can exercise control of the underlying entity (the exact percentage differs between countries and regulatory bodies).1
While not inherently illegal, the anonymity and lack of transparency these vehicles provide makes them a haven for fraud, money laundering, tax evasion, other financial crime and sanctions violations.
A UBO is any individual that holds 10–25% or more (depending on jurisdiction) of a company’s shares or voting rights and who can exercise control of the underlying entity (the exact percentage differs between countries and regulatory bodies).1
While not inherently illegal, the anonymity and lack of transparency these vehicles provide makes them a haven for fraud, money laundering, tax evasion, other financial crime and sanctions violations.
Download our infographic to learn more about UBOs, and how to protect your organization.
1. https://www.swift.com/your-needs/financial-crime-cyber-security/know-your-customer-kyc/ultimate-beneficial-owner-ubo
1. https://www.swift.com/your-needs/financial-crime-cyber-security/know-your-customer-kyc/ultimate-beneficial-owner-ubo
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