How is a UBO defined?

By regulation, often a percentage of ownership or significant control through management or voting rights. Policies should map thresholds per jurisdiction and capture control via non equity paths.

What if ownership is opaque?

Request attestations, use multiple registries, and escalate to enhanced due diligence. Document limitations and apply higher risk ratings or restrictions until clarity improves.

How often is UBO refreshed?

At onboarding, on material changes, and at periodic KYB reviews based on risk. Event triggers include mergers, director changes, or adverse media findings.

Why screen UBOs if the company is clean?

Hidden owners can be sanctioned or high risk. Screening individuals behind entities reduces exposure and satisfies regulatory expectations for thorough diligence.

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Beneficial Ownership (UBO)

Overview

Beneficial ownership identifies the natural persons who ultimately own or control a legal entity, typically through equity thresholds or other control mechanisms. UBO discovery is central to KYB and AML, helping institutions evaluate sanctions exposure, corruption risk, and complex structures that may hide illicit actors. Programs collect ownership attestations, corporate filings, and registry data, then reconcile discrepancies with documentary evidence.

Graph analysis helps trace multi layer chains and nominee arrangements across jurisdictions. Governance requires clear definitions aligned to local laws, periodic refreshes, and documentation of challenges where information is unavailable or unreliable. Screening UBOs against sanctions, PEP, and adverse media lists is essential. Accurate UBO data strengthens risk scoring, improves correspondent banking relationships, and enables effective enhanced due diligence for higher risk industries or geographies.