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Identifying Ultimate Beneficial Owners (UBOs) in Gibraltar

As a guide for companies and trusts, this article outlines various scenarios and examples to help identify who has control or significant influence over these entities.

Who is an Ultimate Beneficial Owner?

An UBO is anyone who meets one of the following criteria:

• Has the power to appoint or remove a majority of the board of directors.
• Has the right to exercise significant influence or control over the company, trust, or similar non-legal arrangement.
• Has significant influence or control over a trust or firm (or similar non-legal arrangement).
• Is part of an agreement with one or more individuals who collectively have more than 25% of the shares, more than 50% of voting rights, or the right to add or remove the majority of directors.

Examples

The following examples illustrate these points:

Example 1: Significant Influence and Control

• Person A has significant influence over the company.
• Person C has the power to appoint and remove directors. In this case, both Person A and Person C are considered UBOs.

Example 2: Trust Ownership

• The Settlor of a trust has significant influence and control over the trust, which owns Company D and is the majority shareholder of the Customer Company.
• As the owner of the trust, the Settlor is considered an UBO.

Example 3: Agreement to Act Together

• Person B and Person C have an agreement to act together:
  • In one scenario, they control 30% of shares.
  • In another scenario, they control 60% of voting rights. In both cases, Person B and Person C are considered UBOs.

Why is Identifying UBOs Important?

Identifying UBOs is crucial for anti-money laundering (AML) and combating the financing of terrorism (CFT) purposes. It helps ensure that companies and trusts operating in Gibraltar are transparent about their ownership structures, reducing the risk of illicit activities.