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An ultimate beneficial owner (UBO) is generally described as an individual who has significant control or influence over a business. Typically, these individuals can benefit from their association with the company, even if they are not a formal owner of the business. In most countries around the world, the threshold to be considered a UBO is holding at least a 25% ownership stake in a company and/or have significant influence.
Companies are responsible for reporting UBOs to the appropriate registrar in the jurisdiction in which their entity is registered and provide updates on changes to ownership structures when they occur. A failure to provide this information may result in penalties for non-compliance and in some cases in criminal charges.
This article explores the importance of UBO reporting, requirements across different countries, and best practices for ensuring ongoing compliance.
UBO reporting is required in order to comply with global regulations against money-laundering, terrorism financing, and combating other financial crimes such as fraud, bribery, and insider dealings. Ultimately, it is a tool used to ensure transparency in business.
UBO reporting requirements vary from country to country and are constantly being updated. Below are general UBO guidelines from a few jurisdictions around the world.
For businesses operating around the world, it’s important to comply with UBO reporting. The following are best practices for ensuring ongoing compliance wherever you do business:
When establishing an entity in a new country or in multiple countries, reporting accurate beneficial ownership information is critical to establishing good standing and complying with local regulations that aim to combat corruption and financial crimes. More importantly, it demonstrates your organization’s commitment to transparency in business. Understanding local requirements in every country you do business in will safeguard your entity from potential penalties and charges for non-compliance and reputational damage that hinder growth.
CT’s global experts have the local know-how to help keep your entity compliant wherever you operate. To learn more about how CT’s Global Corporate Services can help address your compliance needs across the world through one central point of contact in the U.S., contact a CT representative at (855) 444-5358 (toll-free U.S.).
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