Ultimate Beneficial Ownership (UBO):
The Key to Financial Transparency and Crime Prevention
What is Ultimate Beneficial Ownership (UBO)?

A UBO is the individual who ultimately owns or controls an entity, directly or indirectly. Global regulations generally define a UBO as an individual who owns at least 25% of a company, though some jurisdictions, like India, have set lower thresholds (10%).

Who qualifies as a UBO?
Why Does UBO Transparency Matter?
1. Combating Money Laundering and Terrorist Financing
  • Anonymous shell companies are frequently used to move illicit funds across borders.
  • A 2022 World Bank report found that 80% of corruption cases involved hidden UBOs.
  • The Pandora Papers and Panama Papers exposed how offshore structures were used to launder money.
2. Strengthening Global Tax Compliance
  • The OECD estimates that $600 billion is lost annually due to corporate tax evasion via offshore structures.
  • India’s Enforcement Directorate (ED) identified over ₹2,500 crore ($300 million) in offshore tax evasion through hidden UBO structures in 2023.

OECD Global Tax Report (2024)

3. Enhancing Corporate Governance and Investor Confidence
  • Public UBO disclosure prevents fraud, insider trading, and politically exposed persons (PEPs) from hiding behind corporate structures.
  • Regulated financial markets, such as the EU, USA, and India, require investors to disclose UBO details for financial transactions and investments.
Global UBO Regulations: A Comparative Analysis
Important to understand the following:-

1.     How Financial Criminals Hide Ultimate Beneficial Owners (UBOs)

2.     Challenges in UBO Compliance

3.     Reporting & disclosures for UBO compliance

4.     Solutions for Strengthening UBO Transparency

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