Ultimate Beneficial Owner (UBO) Declaration Form

Written by Konky Wang
November 5, 2024

During onboarding, the attached document (Paynetics UBO Declaration Form) is required to declare any UBO associated with an entity.

Who is an Ultimate Beneficial Owner (UBO)?

An Ultimate Beneficial Owner (UBO) is the person that is the ultimate beneficiary when an institution initiates a transaction.

Someone is considered a UBO based on their level of ownership or control in a company or legal entity. The criteria for determining UBO status can vary depending on the jurisdiction and regulatory requirements, but typically include:

• Ownership: A person who directly or indirectly owns a significant portion of the company's shares or voting rights may be considered a UBO. This ownership threshold can vary but is often set at 25% or more.
• Control: Individuals who have significant influence or control over the management or decision-making of the company, even if they do not own a large percentage of shares, may also be classified as UBOs. This can include factors such as appointment or removal of directors, decision-making powers in important matters, or veto rights over key decisions.
• Beneficial Interest: Individuals who ultimately benefit from the company's assets, profits, or activities, regardless of formal ownership or control, may be deemed UBOs. This can include beneficiaries of trusts or other legal arrangements through which ownership or control is exercised.
• Complex Ownership Structures: In cases where ownership is held through complex structures involving multiple layers of ownership, determining the UBO may require tracing the ownership chain to identify the individuals who ultimately benefit from the entity's activities.

Overall, the key consideration in determining UBO status is identifying the individuals who have the ultimate economic interest in or control over a company or legal entity, regardless of the formal legal arrangements through which ownership or control is exercised.