AML/CFTR 1.3.5 Who is the beneficial owner?

(1) The beneficial owner is:
(a) for an account — the individual who ultimately owns, or exercises effective control, over the account;
(b) for a transaction — the individual for whom, or on whose behalf, the transaction is ultimately being, or is ultimately to be, conducted (whether by proxy, trusteeship or mandate, or by any other form of representation); or
(c) for a legal person or legal arrangement — the individual who ultimately owns, or exercises effective control over, the person or arrangement.
(2) Without limiting subrule (1) (a), the beneficial owner for an account includes any individual in accordance with whose instructions any of the following are accustomed to act:
(a) the signatories of the account (or any of them);
(b) any individual who, directly or indirectly, instructs the signatories (or any of them).
(3) Without limiting subrule (1) (c), the beneficial owner for a corporation includes:
(a) an individual who, directly or indirectly, owns or controls at least 20% of the shares or voting rights of the corporation; and
(b) an individual who, directly or indirectly, otherwise exercises control over the corporation's management.
(4) Without limiting subrule (1) (c), the beneficial owner for a legal arrangement that administers and distributes funds includes:
(a) if the beneficiaries and their distributions have already been decided — an individual who is to receive at least 20% of the funds of the arrangement;
(b) if the beneficiaries or their distributions have not already been decided — the class of individuals in whose main interest the arrangement is established or operated as beneficial owner; and
(c) an individual who, directly or indirectly, exercises control over at least 20% (by value) of the property of the arrangement.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)