Ultimate beneficial owner (UBO)

The UBO is often the person holding more than 25% of a company’s shares or voting rights, but depending on local laws, the threshold may differ. UBOs are the true decision-makers and beneficiaries behind corporate structures.

Identifying UBOs helps prevent misuse of legal entities for money laundering, tax evasion, or terrorist financing. Regulatory frameworks like FATF, AMLD, and FinCEN require UBO verification during business onboarding.

Opaque ownership structures, nominee arrangements, and jurisdictional secrecy make UBO discovery difficult. Even when disclosures are made, verifying their accuracy and keeping records updated over time is challenging.