What is a ubo?

A UBO (Ultimate Beneficial Owner) is an individual who ultimately owns or controls a business entity, such as a company or trust. UBOs are important for purposes of transparency and regulatory compliance, as they help authorities to identify who the true owners and decision-makers of a business are.

Identifying the UBO of a company is crucial for preventing money laundering, tax evasion, and other illicit activities. In many jurisdictions, companies are required to disclose their UBOs to government agencies, and failure to do so can result in penalties and legal consequences.

UBOs are often determined based on the percentage of ownership in a company, voting rights, or control over decision-making. In some cases, UBOs may be difficult to identify, especially in complex ownership structures or in cases where individuals attempt to hide their ownership through layers of intermediaries.

Overall, UBOs play a critical role in ensuring transparency and accountability in the business world and are a key focus of anti-money laundering and counter-terrorism financing efforts worldwide.