Here is the rewritten article in markdown format:

Beneficial Owners: Understanding the Concept Under Georgian Law

The Georgian Law on Prevention and Counteraction of Money Laundering, Terrorism Financing, and Proliferation of Weapons of Mass Destruction provides a clear definition of beneficial owners. In this article, we will break down Articles 12-13 of the law to provide a comprehensive understanding of who is considered a beneficial owner.

Article 12: Identification of Beneficial Owner

A beneficial owner is defined as a natural person who:

Conditions for Identifying a Beneficial Owner

• Is the last possessor or controller of the client (individual or legal entity) and/or on whose behalf a transaction is prepared, made, or completed.
• Possesses, directly or indirectly, 25% or more than 25% of the holdings or voting shares of a legal person.

Article 13: Beneficial Owner

This article provides further clarification on beneficial owners:

Types of Beneficial Owners

• A natural person who is the last possessor or controller of a client (individual or legal entity) and/or on whose behalf a transaction is prepared, made, or completed.
• A natural person who possesses, directly or indirectly, 25% or more than 25% of the holdings or voting shares of a legal person.
• For entrepreneurial legal entities, direct possession of holdings or voting shares shall be considered as possessing 25% or more than 25% of holdings or voting shares, and indirect possessions shall be considered as possessing 25% or more than 25% of holdings or voting shares by a natural person(s) or several legal persons controlled by the same natural person(s).
• If, after implementing all possible measures, an accountable person is sure that a beneficial owner does not exist, preventive measures determined by Article 10(1)(b) shall be applicable to a person with managerial authority over the client.
• In cases of trusts or legal structures similar to trusts, preventive measures shall be applicable to:
  • Mandatary
  • Mandator
  • Guardian (if any)
  • Beneficiary
  • Any other natural person exercising effective ultimate control over a trust or a legal structure similar to a trust (if any).
• If the beneficiary of a trust is not determined in advance, an accountable person shall obtain sufficient information on the circle of persons benefiting from the creation or activity of a trust or a legal structure similar to a trust, to ensure that it is possible to implement preventive measures referred to in Article 10(1)(b) in relation to the beneficiary before benefits are paid or rights are exercised.

By understanding these definitions and conditions, financial institutions and individuals can better identify and mitigate potential money laundering risks.