Overview
When completing the Know Your Business (KYB) process, it is important to trace the ownership structure to identify the Ultimate Beneficial Owners (UBOs). If the owner is another entity, you should continue to trace ownership until you reach natural persons (individuals).
How to List Owners When Ownership Is Held by Another Entity:
Trace Ownership to Natural Persons: If the entity is owned by other companies or entities, continue tracing the ownership chain until you identify the individuals who ultimately own or control the business.
Example:Fund A is 50% owned by You and 50% owned by Company B.
If Company B is owned by additional individuals or entities, continue tracing until you identify the individuals, or stop at the entity level if it doesn’t represent a natural person.
Stop at the Entity Level: If an entity is owned by other companies (not natural persons), you should stop the trace at that entity, as it doesn’t represent a natural person.
When No Individual Owns 25% or More:
If no individual owns more than 25% of the company in the ownership chain, you may list "None" for the UBO section.
Why This Matters
This approach helps ensure compliance with regulatory standards and accurately identifies the individuals who have control over or significant influence in the company, which is the core of the Know Your Business (KYB) process.
If you need further assistance or clarification, don’t hesitate to contact us at support@cedar.money.