Financial Crime World

Identifying Ultimate Beneficial Owners (UBOs)

As a business owner or financial institution, it is essential to identify the Ultimate Beneficial Owners (UBOs) of a Customer Company. This guide provides an overview of different scenarios where an individual or entity may be considered a UBO.

Direct Ownership Scenarios

  • A person is considered a UBO if they directly own 25% or more of the shares in the Customer Company.
  • Example: John owns 30% of the shares in XYZ Limited, making him a UBO.

Indirect Ownership Scenarios

  • A person is considered a UBO if they indirectly own 25% or more of the shares in the Customer Company through an intermediate entity, such as a trust or firm.
  • Example: Jane owns a trust that holds 30% of the shares in XYZ Limited, making her a UBO.

Powers Over the Board Scenarios

  • A person is considered a UBO if they have power to appoint or remove a majority of the directors of the Customer Company.
  • Example: Michael has the right to appoint and remove three out of five directors of XYZ Limited, making him a UBO.

Significant Influence or Control Scenarios

  • A person is considered a UBO if they have significant influence or control over the Customer Company, either directly or indirectly through an intermediate entity.
  • Example: Sarah has significant influence over the business decisions of XYZ Limited due to her ownership of 20% of the shares and her role as chairperson of the board.

Agreements to Act Together Scenarios

  • Two or more persons may be considered UBOs if they enter into an agreement to act together and collectively hold 25% or more of the shares in the Customer Company, or have the right to add or remove a majority of directors.
  • Example: Three individuals form a partnership that collectively holds 30% of the shares in XYZ Limited, making them UBOs.

Important Notes

  • This guide appears to be specific to Gibraltar regulations and may not be applicable in other jurisdictions.
  • If you’re looking for guidance on identifying UBOs in your own jurisdiction, it’s best to consult with local authorities or regulatory experts.