Ultimate Beneficial Owner
The Ultimate Beneficial Owner is the final natural person at the top of an ownership chain — the individual who ultimately owns or controls a legal entity, even if that control runs through multiple layers of holding companies or trusts. UBO identification is a CDD requirement for corporate clients and is central to preventing criminals from using complex structures to obscure ownership.
if a client company is owned by another company, which is owned by a third company, you must trace through the structure to identify the individual(s) who ultimately own or control it.
Other terms that go with Ultimate Beneficial Owner
A beneficial owner is the natural person who ultimately owns or controls a legal entity — such as a company or trust — or on whose behalf a transaction is being conducted. Identifying beneficial ownership is a core CDD obligation where clients are companies, partnerships, or trusts, since the legal owner and the true controlling person may be different.
A Person with Significant Control is a UK Companies Act concept that refers to an individual who holds more than 25% of shares or voting rights in a UK company, can appoint or remove the majority of the board, or otherwise exercises significant influence or control. UK companies must maintain a PSC register and file it at Companies House.
Put Ultimate Beneficial Owner into practice with Certivus
Knowing the term is the first step. Certivus gives you the workflows — client intake, CDD, EDD, PEP and sanctions screening, audit-ready records — to apply it across every client.
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