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Ultimate Beneficial Ownership (UBO) Meaning

Ultimate Beneficial Ownership (UBO) refers to the natural person or persons who ultimately own, control, or benefit from a legal entity or arrangement, such as a company, trust, or account. Regulators and financial institutions require identification of UBOs to combat money laundering, tax evasion, and other financial crimes.

Determining UBO involves tracing ownership structures and voting rights to uncover individuals who have substantial control (e.g., 25% or more) or receive the economic benefits of an entity’s activities. In the cryptocurrency context, exchanges and custodians collect information about UBOs of institutional clients to comply with know-your-customer (KYC) and anti-money laundering (AML) regulations.

Transparency of beneficial ownership helps law enforcement trace illicit activity and enhances corporate governance by holding individuals accountable for the actions of their companies.

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