UBO (ultimate beneficial owner)
An ultimate beneficial owner, or UBO, is the real person who ultimately owns or controls a company, as distinct from any intermediate companies in the ownership chain. The usual threshold is an individual who owns or controls more than 25% of the shares or voting rights, or who otherwise exercises control. Identifying the UBO answers the question: who really benefits from, and stands behind, this business?
- Who it is
- The natural person at the top of the ownership or control chain.
- Common threshold
- More than 25% of shares or voting rights, or equivalent control.
- Why it is identified
- To meet anti-money-laundering rules and know who a lender is dealing with.
Why UBOs are identified
Companies can be owned through layers of other companies, which can obscure who is really in control. Anti-money-laundering rules require a lender to look through that structure to the individuals at the top. Identifying and verifying the UBO prevents the financial system being used behind a corporate screen, and is a standard part of onboarding a business borrower.
UBOs and the public record
In the UK, companies must record people with significant control on the register at Companies House, which overlaps closely with the concept of a UBO. A lender will typically use that record alongside its own verification to establish and confirm who ultimately owns or controls a prospective borrower.
UBOs and Credicorp
Credicorp identifies and verifies the ultimate beneficial owners of the UK limited companies and LLPs it lends to, as part of its know-your-customer and anti-money-laundering checks. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).
See also
- KYC — knowing and verifying your customer.
- AML — the anti-money-laundering framework.
- Politically exposed person — a higher-risk individual.
- Companies House — where people with significant control are recorded.
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