Ultimate Beneficial Owner (UBO)

An Ultimate Beneficial Owner (UBO) is the individual who ultimately owns or controls a company or legal entity, either directly or indirectly. UBOs are often behind layers of ownership, such as corporate shareholders or trust structures, but they have significant influence over the entity’s activities and decisions.

Key criteria for identifying a UBO include:

Ownership Threshold: A UBO typically holds 25% or more of the shares or voting rights in a company.

Control through Other Means: Even if the ownership threshold is not met, individuals who exert significant control over the company’s operations, such as through contractual arrangements, can be considered UBOs.

Beneficiaries of Trusts: In trust structures, the UBO may include the settlor, trustees, or beneficiaries, depending on their level of control.

In Gibraltar, identifying and verifying UBOs is a legal requirement under Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. This ensures transparency, prevents financial crimes, and aligns Gibraltar with international standards such as the FATF (Financial Action Task Force) guidelines.

For businesses and fiduciary service providers, maintaining an accurate register of UBOs is essential to comply with local and international laws. Non-compliance can result in severe penalties and reputational damage. Professional guidance ensures that UBO identification and reporting are conducted correctly, safeguarding both the company and its stakeholders.