Beneficial Owner

A beneficial owner is an individual who holds a percentage stake in a corporation or legal entity. They can own a part of property or asset, even though the legal title of that asset is held by someone else. Beneficial owners can have the power to vote and influence decisions related to transactions that involve that property or asset. For example, a corporate shareholder is considered a beneficial owner, and they can vote regarding the shares in a company. 

A beneficial owner can either own or control an interest in a legal entity or arrangement, such as a company, foundation, or trust. This concept is often used in the context of financial assets, real estate, and corporate structures to identify the true owner behind the nominal owner.


Frequently asked questions


Who is Classed as a Beneficial Owner?


A beneficial owner is classed as someone who enjoys the benefits of ownership, even if the property’s or asset’s title is in someone else’s name. For example, publicly traded securities are often registered in a broker’s name for safety and convenience. That’s why this differs from legal ownership, although oftentimes, the beneficial and legal owners are the same person. 


What are the Criteria for Beneficial Ownership?


How Do People Conceal Beneficial Ownership?


Why is AML Compliance Important in the Context of Beneficial Ownership?


Why is it important to identify Beneficial Owners?


Save costs by onboarding more verified users

Join hundreds of businesses that successfully integrated iDenfy in their processes and saved money on failed verifications.