Beneficial owner

How it is used

A key KYC and AML term, also called the ultimate beneficial owner (UBO). Banks must identify and verify the beneficial owners of corporate customers, usually anyone above a set share of ownership or anyone with control. Complex chains of companies and nominee shareholders are red flags. Many countries keep beneficial ownership registers.

Example sentences

1. We cannot open the account until we identify the company's beneficial owners.

2. The beneficial owner turned out to be hidden behind three offshore companies.

Common collocations

• identify the beneficial owner
• beneficial ownership
• ultimate beneficial owner
• beneficial ownership register

Related terms

• KYCShort for know your customer: the checks a bank makes to confirm a customer's identity, address and source of funds before and during the business relationship.
• AMLShort for anti-money laundering: the laws, controls and procedures that banks use to prevent, detect and report money laundering.
• onboardingThe process of accepting a new customer, including collecting information, verifying identity, running checks and opening the first account or product.
• PEPShort for politically exposed person: someone with an important public role, such as a senior official or judge, or a close family member or associate of such a person.
• beneficiaryThe person or company that receives money from a payment, a letter of credit, an insurance policy or a will.

More terms: Regulation & Compliance

• compliance
• money laundering
• fraud
• regulator
• capital adequacy ratio
• suspicious transaction report
• Basel III
• sanctions
• terrorist financing
• banking secrecy
• reserve requirement
• regulatory reporting