DEFINITION
Ownership Structure
The ownership structure of a given legal entity details the individuals with significant control and/or ownership within said business. That is to say that the ownership structure details all equity owners of a legal entity. This includes beneficial owners, individuals with significant control over the entity and shareholders. Ownership structures are an essential part of AML and CFT regulations, with the Ultimate Beneficial Owner being especially important in some jurisdictions.
Synonyms
Ownership model
Acronyms
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Share
Synonyms
Ownership model
Acronyms
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Examples
The ownership structure of a bank would typically include the founders, equity investors, shareholders as well as if the bank has a parent company and/or is owned by the government. Knowing the identities of these individuals is essential for AML/CFT compliance as people in these positions are at a higher risk of committing financial fraud.
FAQ
What is an opaque ownership structure?
An opaque ownership structure is a complex structure where it is not transparent who the beneficial owners are.
What are the levels of an ownership structure?
The three levels of ownership structures are parent, subsidiary, and affiliate.
Who is part of an ownership structure?
Everyone with significant control and/or ownership of company shares is counted as a beneficial owner and thus is included in the ownership structure.
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