What is Beneficial Owner? Explain?

          Beneficial Owner

 Table of content:-

Beneficial Owner
Types of Beneficial owners
Ultimate Beneficial owners (UBOs)
Intermediate Beneficial owners (IBOs)

What is Beneficial Owner?

1. Definitions:

A beneficial owner is a person who enjoys the benefits of ownership though the property's title is in another name.

According to Inter-American Development Bank (IADB) Beneficial owners are - “Always natural persons who ultimately own or control a legal entity or arrangement, such as a company, a trust, a foundation.”

According to the United States' Securities Exchange Act, :
    “A Beneficial owner of a security includes any person who, directly or indirectly, has or shares voting or investment power.”

According to FATF ( Financial Action Task Force)
  “Beneficial owner is the natural person(s) who ultimately            owns or controls a legal entity and/or the natural person on whose behalf a transaction is being conducted.


2. Types of Beneficial owners

Ultimate Beneficial owners (UBOs)
Intermediate Beneficial owners (IBOs)

Ultimate Beneficial owners (UBOs)                                                 

Definitions:

are defined as natural persons or entities who ultimately own or control the customers according to the required threshold.

    one who holds 25% or more of share capital; or
    one who exercises 25% or more of the voting rights.

Intermediate Beneficial owners (IBOs) 

Definitions:

are defined as entities identified as existing in the corporate structure that available between the customer and the UBO.

e.g. A trust company.


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