CDD in 10 steps

After determining whether you are subject to Wwft, the identification, and verification of your client, you must determine the UBO, or beneficial owner, in the case of a legal entity. This step obviously does not need to be performed when doing business with a natural person.

What is a UBO?

UBO stands for Ultimate Beneficial Owner or the person who owns 25% or more of the shares or has ultimate control within a company. Under European law, the UBO is:

''The natural person(s) who ultimately owns or controls the client and/or the natural person(s) on whose behalf a transaction or activity is conducted.''

A UBO declaration is a written signed document containing the UBO. In specific cases, a person or persons belonging to senior management may be determined as a so-called "Pseudo-UBO".

UBO Statement

A UBO declaration is a written signed document indicating who the UBOs of a company are. Such a declaration is necessary to ensure that natural persons who have malicious intentions regarding money laundering or terrorist financing can hide behind legal entities.

Pseudo-UBO

In certain specific cases, a person or persons belonging to senior management (for example, the directors) can be determined to be UBOs (so-called "Pseudo-UBO"). This is possible, for example, if no true UBO can be identified based on shares, voting rights, or ownership. This regulation ensures that a UBO can be registered for each legal entity. However, a pseudo-UBO may only be designated when everything has been done to trace the real UBO.

From September 27, 2020, the UBO register will come online. In the UBO register, certain companies are required to register and declare who the UBOs are.

UBO register

From September 27, 2020, the UBO register will come online. The UBO register will require certain companies to register and declare who the UBOs are. The UBO register is accessible to everyone, except that certain information is only accessible to authorized authorities.

If no UBO is identifiable from the interests held, the directors of the company or legal entity are registered as UBOs. Registration requires not only the personal details and interest of the UBO but also the submission of documents substantiating the nature and origin of the beneficial interest in an organization.