EU AML Regulation UBO requirements

𝗕𝗲𝗻𝗲𝗳𝗶𝗰𝗶𝗮𝗹 𝗢𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 (𝗕𝗢) pertains to ownership of 25% (or >) of the shares/voting rights/other ownership interest of a corporate entity.

Ownership interest refers to both control rights & significant rights in terms of the yielded benefit. In case of indirect ownership, BOs are identified by multiplying the shares/voting rights/other ownership interests within the ownership chain and adding them together. 

𝗨𝗕𝗢 𝗶𝘀 𝗱𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲𝗱 𝗯𝗮𝘀𝗲𝗱 𝗼𝗻: 
1. The existence of direct or indirect control / ownership interest; or
2. The existence of control via other means. 
 
𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗥𝗲𝗴𝗶𝘀𝘁𝗲𝗿𝘀: the obliged entities should use central registers to verify the data they had obtained on customers. If this process reveals discrepancies, the obliged entity should report such inconsistencies to the central register. As not all the registers are already fully accessible, consult the EU-country specific status and transitional (reporting) requirements. 
 
𝗖𝗼𝗹𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗨𝗕𝗢 𝗗𝗮𝘁𝗮: the data obliged entities are required to obtain to verify the identity of BOs must be “adequate, accurate, and up to date". The requirements differ according to the type of BO but should include the following*: 

↪ all names and surnames, place and DOB, residential address, country of residence, nationality, number of the identity document, & if applicable, assigned unique personal identification number & general description of the source of such number; 
↪ the nature, extent, and start date of the beneficial interest held. 
*𝙉𝙤𝙩 𝙚𝙭𝙝𝙖𝙪𝙨𝙩𝙞𝙫𝙚. 
 
𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀: certain types of reporting obligations of BO apply to non-EU entities who do business in the EU, purchase real estate in the EU, purchase motor vehicles/watercraft/aircraft over certain thresholds, &/or are awarded certain types of public contracts. 
 
𝗣𝘀𝗲𝘂𝗱𝗼 𝗨𝗕𝗢𝘀: where a UBO cannot be identified, Senior Managing Officials should be identified and verified as BOs. 

👉𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬 𝐟𝐨𝐫 𝐚 𝐟𝐫𝐞𝐞 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧 
Discover how TIME2COMPLY can help your company comply with the EU UBO requirements. 

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