Beneficial owner
Under the US CDD rule, an individual who owns a quarter or more of a legal entity, or who controls it.
Under FinCEN's Customer Due Diligence rule, the beneficial owners of a legal entity customer are the natural persons who own, control and profit from it: each individual who owns twenty-five per cent or more of the equity interests, and an individual who controls it. Covered financial institutions must identify and verify them when companies open accounts. An agent can gather and cross-check ownership documents, but conclusions on complex structures belong with analysts.
Agent Minute explains this term on 24 February 2027.
Related terms
Identity proofingCollecting, validating and verifying information about a person to establish that they are who they claim to be.Legal Entity Identifier (LEI)A unique twenty-character code that identifies a legal entity and links to verified reference data about it.Know Your Agent (KYA)Checking which agent is acting, who operates it and whom it acts for, before letting it act.Digital identityThe unique representation of a subject, such as a person or organisation, engaged in an online transaction.