How to identify the beneficial owner?
Asked by: Alejandra Rempel DDS | Last update: February 9, 2026Score: 4.3/5 (59 votes)
Identifying a beneficial owner (BO) means finding the real person(s) who ultimately own or control a company, typically those owning 25% or more of equity/voting rights or exercising substantial control (like senior management), a process crucial for anti-money laundering (AML) compliance under rules like the FinCEN's Corporate Transparency Act (CTA). Identification involves tracing ownership through complex structures (layers of companies, trusts) and confirming individuals who are senior officers, important decision-makers, or have appointing/removing power for senior roles, using corporate documents, due diligence, and government records.
How do you identify the beneficial owner of a company?
Types of Beneficial Owners: Who is Considered a Beneficial Owner?
- Any individual that owns a minimum of 25% of the legal entity.
- Any individual that holds a significant ability to control, manage, or direct the legal entity.
- Any trust that owns a minimum of 25% of the legal entity.
How to identify the UBO of a company?
To identify Ultimate Beneficial Owners (UBOs), companies typically follow these steps: Verify the company's legitimacy. Using reliable documents and data sources, gather and verify key information about the company, such as its name, address, and list of top management. Assess the ownership chain.
How to confirm if a boi was filed?
After submitting your BOI Report, a confirmation page will display your filing status. Look for the message: "Filing Successful. You may download the transcript above." Important Note: FinCEN does not store or provide a copy of the Submission Transcript or BOIR after the filing process is complete.
How do you verify beneficial ownership?
To determine the ultimate beneficial ownership of an entity there are several steps to go through:
- Identification process. ...
- Conduct due diligence: Perform background checks and research on key stakeholders to understand their relationships with the company and potential control over decision-making.
What is Beneficial Ownership | Identifying the Beneficial Owners | Threshold Required - AML Tutorial
Where can I confirm my beneficial ownership information?
Contact FinCEN for more information and questions regarding beneficial owner information. Do not contact the IRS. All inquiries must be directed to FinCEN.
How to find a company UBO?
How to find direct UBOs of a company?
- Ask for the company's official shareholder register.
- Go through the list and mark all individual people (not companies). ...
- For each person, see what percentage of the company they own. ...
- Anyone with 25% or more ownership or voting rights is a UBO.
How to check if beneficial ownership has been filed?
Once your beneficial ownership has been filed and the supporting documents submitted, you will receive a confirmation from the CIPC in the form of a certificate to confirm receipt.
Is a boi report mandatory?
FinCEN Removes BOI Reporting Requirements for US Companies and US Persons. The Financial Crimes Enforcement Network issued an interim final rule that removes the requirement for US companies and US persons to report beneficial ownership information to FinCEN under the Corporate Transparency Act.
Does my accountant file my boi report?
Yes, CPAs can assist with BOI reports by providing general information, helping determine reporting requirements, and completing forms based on client data.
What are UBO details in KYC?
When it comes to Ultimate Beneficial Ownership (UBO), the most common UBO meaning refers to the natural person who is ultimately responsible for, owns or controls a 'customer'. In most cases, this 'customer' is an institution, business or legal entity: of which the UBO has 100% direct ownership.
How to verify ownership of a company?
To find who owns a company, check the Secretary of State's business database in the state where it's registered, look for an "About Us" page or leadership section on the company's website, and use online tools like WHOIS for domain registration, but remember that information varies by entity type and state, with LLCs sometimes hiding owner names unless they're public companies or file voluntarily.
What companies are exempt from a boi?
All entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners are now exempt from the requirement to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA ...
Is a CEO always the UBO?
Yes, under the “control” test. If no shareholder meets the 25% threshold, individuals in positions of control (e.g. CEO, Chairman, Managing Director) are considered UBOs and must be verified.
Is UBO information public?
Since the publication of the CJEU's judgment on 22 November 2022, the Dutch, Belgian and Luxembourg UBO registers have blocked public access to UBO data.
When must a beneficial owner be identified?
The federal Beneficial Ownership Rule requires financial institutions to collect and verify BOI identification from a legal entity—called a “reporting company”—when that entity seeks to set up a new account or other business relationship with the company.
Who needs to file a boi report in 2025?
In March 2025, FinCEN issued an interim final rule that changed the definition of “reporting company.” Now, only companies formed under foreign law and registered to do business in a U.S. state or tribal jurisdiction must file a BOI report. You are now exempt if your business was formed in the U.S., including Texas.
How to find beneficial owners of a company?
SEC Filings. Form 14A is the proxy statement in which you will find a list of directors and officers and the number of shares they each own. There's also a list of beneficial owners, or people or entities owning more than 5% of a company's stock.
What happens if I don't fill out a boi report?
Failure to file a BOI report can result in severe civil and criminal penalties. If you don't file a BOI report, you could face a $500-per-day fine, up to $10,000, and up to two years in prison.
How do you identify beneficial ownership?
For identifying the BOs or determining the beneficial ownership, the regulated entity must refer to independent documents like a Memorandum of Association or registered Partnership Deed or can also seek information from reliable, independent sources like the centralised corporate registry.
What happens if I don't file beneficial ownership?
Entities that are BO non-compliant will not be able to continue and finalise their Annual Return submission, resulting in penalty fees for late submission or ultimately deregistration of the company.
Who can see beneficial ownership information?
Access to BO Information
persons authorised in writing by a beneficial owner, only in relation to that beneficial owner's information; any reporting institution carrying on any activity listed in the First Schedule of the AMLA; BNM as the competent authority under the AMLA; any enforcement agency in Malaysia; and.
How to verify UBO?
The process typically begins with verifying the identity of the UBO. This involves collecting official identification documents, such as passports, national ID cards, or other government-issued documents. The information on these documents must be cross-referenced with other sources to confirm its accuracy.
How to find beneficial owners?
Determining beneficial ownership & control
This is most commonly achieved by asking the customer and then validating the information they provide by consulting independent and reliable documentation or electronic data.
How to verify ownership of a business?
To find a business owner, check the Secretary of State's website for corporate filings (Articles of Organization, annual reports), local county clerk/tax assessor for DBA/licenses, BBB for owner names, or the SEC EDGAR database for public companies, as ownership details vary by state and business type, requiring searches in state-specific databases or local records for ownership info.