Ultimate Beneficial Owners
All businesses operating as a registered company are required to provide details of all Ultimate beneficial owners (UBOs). This article will give more information about UBOs.
What is a UBO?
UBOs are individuals or organisations who, directly or indirectly, own or control 25% (or more) of the shares in the business.
Control of the business may be exercised through:
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A direct shareholding
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Intermediate holding companies
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These are companies that act as middle-tier entities within a larger corporate ownership structure. For example:
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Company A is 100% owned by Company B (Intermediate holding company).
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Company B is 100% is owned by 4 individuals, each with 25% ownership
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These four individuals would be considered UBOs of Company A.
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Individuals who have decision-making capacity with regard to the business
These are individuals who exert significant control over the company, have the power to manage the customer’s account, assets or transactions without requiring specific authority to do so, or who would be in a position to override internal procedures and control mechanisms. Examples of these individuals include power of attorneys, silent partners and guardians.
What constitutes control will depend on:
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The nature of the company
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The distribution of shareholdings
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The nature and extent of any business or family connections between the beneficial owners
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If a trust directly or indirectly owns (through any contract, arrangement, understanding, relationship or otherwise) 25% or more of equity interests of a legal entity customer, the beneficial owner is the trustee.
What if no one owns 25% or more of the business?
Please provide the names and dates of birth of anyone who exercises control over the management of the company (e.g. CEO, COO, CFO.)
If there are no individuals to enter, you are not required to enter any details. Simply click the box confirming that all details provided are accurate.
What if my Company is Limited by Guarantee?
If your company is Limited by Guarantee and there is no specific individual noted as an ‘Ultimate Beneficial Owner’, we require that you still select ‘Yes’ and provide details of the following individuals:
- Any individuals whose ‘guaranteed amount’ is 25% or more of the total guaranteed amount of the entity
- Any individuals who are entitled to 25% or more of the funds disbursals of the company.
In the event no individual meets the above requirements, please enter details of anyone who exercises control over the management of the company (e.g. CEO, COO, CFO, Executive directors etc.)