How to Identify UBOs: Ultimate Beneficial Owners

Who Are UBOs and Why Do They Matter?

  • Ensure that the FIs perform screening and provide risk rating for all the required parties against Politically Exposed Persons (PEPs) or as having negative news associated with the UBOs.
  • Ensure FIs do not do business with sanctioned customers associated with the UBOs.
  • Understand the potential risk that a UBO poses to an FI through its relationship with multiple customer and vendors.
  1. Corporate transparency is severely hampered by fragmented and inconsistent data held in national registers around the globe.
  2. Entering into a contract or business relationship with a company without full knowledge of beneficial ownership, past or present, introduces significant risk to an organization.
  3. Legal corporate structures with multiple layers of ownership increases the number of entities to be verified.
  4. A tendency to perform reactive, document-centric and manual processes that cannot help actively manage risk and compliance.
  5. A lack of standardized documentation across various countries, making the job of supporting compliance obligations and validating ownership much more difficult.
  6. In jurisdictions where it is easy to transfer ownership, the financial institution may not be aware of changes, which may impact the client risk profile and risk appetite of the bank to do business with the customer.
  7. Complicated by layers of structures, corporate vehicles and jurisdictional laws, financial institutions may find it difficult to detect changes in profiles or suspicious patterns.
  8. Data silos also hinder detecting beneficiary exposure making it crucial to use technology to link data and information stored in different repositories.

Effective and Advanced Ways for Identifying and Verifying UBOs



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store



Trulioo is the leading global identity verification provider helping businesses meet #AML #KYC and #KYB compliance