Ultimate Beneficial Owner (UBO)

A Beneficial Owner refers to the individual(s) who ultimately own or control a legal entity, such as a company, trust, or partnership. Beneficial owners play a critical role in the enforcement of anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as identifying the true owners helps prevent illicit activities like money laundering and tax evasion.

In the UK, identifying the beneficial owner and significant controller of an entity involves detailed due diligence and verification processes. Here are the key steps typically taken to identify a beneficial owner:

1. Direct Ownership Disclosure: Companies are required to maintain registers of People with Significant Control (PSC). This includes individuals who own or control more than 25% of the company’s shares or voting rights.
2. Indirect Ownership Identification: In cases where ownership is held through corporate structures or complex arrangements, it’s essential to trace the ownership chain to uncover the beneficial owner who ultimately benefits from the entity.
3. Due Diligence Checks: Financial institutions and regulated businesses must perform due diligence on their customers to identify the ultimate beneficial owner. This often involves verifying identities through official databases, reviewing identity documents, and understanding the ownership structure.
4. Beneficial Ownership Registers: The UK has established beneficial ownership registers for companies registered in the UK. These publicly accessible registers reveal the individuals who ultimately control or own the entity.
5. Regulatory Compliance: Compliance with regulations, such as the UK Money Laundering Regulations, requires ongoing monitoring to ensure beneficial ownership information remains accurate and up to date.

Identifying beneficial owners and significant controllers is vital for enhancing transparency, promoting corporate accountability, and ensuring compliance with financial regulations.

If you need access to this type of data covering all UK companies, be sure to explore our Business Data solution.