What is an Ultimate Beneficial Owner (UBO)?
An Ultimate Beneficial Owner (UBO) is an individual or entity that ultimately owns or controls a company or legal entity. The key criteria for determining a UBO are:
Direct Ownership: A person who owns more than 25% of the shares or voting rights in a company.
Indirect Ownership: A person who owns more than 25% of the company’s shares through other entities or individuals.
Significant Control: A person who exercises significant control or influence over the company, regardless of whether they own more than 25% directly or indirectly.
Why is Identifying UBOs Important?
Transparency: Identifying UBOs ensures transparency in business operations by making clear who truly owns and controls the company, helping to prevent fraudulent activities and ensure lawful conduct.
Regulatory Compliance: Identifying UBOs is required under anti-money laundering (AML) and know-your-customer (KYC) regulations, which help to mitigate risks related to financial crimes, such as money laundering or terrorism financing.
Business Trust: Knowing and verifying UBOs ensures that businesses on the platform are legitimate and trustworthy, maintaining the integrity of the financial ecosystem.
What This Means for Your Business:
If your business has one or more UBOs, you will be required to disclose their details during the Know Your Business (KYB) process.
For transparency and regulatory compliance, you’ll need to provide clear documentation regarding the ownership structure and control of your business, including information on UBOs, whether they are individuals or entities.
How UBOs Are Verified:
During the KYB process, Cedar will ask you to submit relevant identification documents for UBOs, including government-issued IDs, proof of address, and other related documents. This helps us confirm the identities of those who truly control or own your business.