What is Beneficial Owner? Who is Beneficial Owner?:
As per Guidelines for Beneficial Owner published by Bangladesh Financial Intelligence Unit (BFIU) beneficial owner means the individual who "has effective control of a customer"; or "owns a prescribed threshold, 20% as per Bangladeshi regulation of the company or legal arrangements".
The Guidelines for Beneficial Owner also clarifies that if any one element (among the three) or any combination of them founds it satisfies as beneficial ownership; these three elements are: 1. who owns 20% or more of a company or legal arrangements; 2. who has effective control of the customer; and 3. the person on whose behalf a transaction is conducted.
Therefore, from the discussion we can find that a person or one can be beneficial owner in three ways - by holding a company's 20% or more share; or by effectual control of a customer; or by conducting a transaction which made for other than the customer that is the customer did not make the transaction for him/herself rather for the person who is behind or who requested or ordered to make the transaction.
A Beneficial Owner is (an individual) a natural person. A company, an organization or a legal arrangement cannot be Beneficial Owner.
Sometimes, it is found that the beneficial owner wants to hide his/her real identity to perform the transaction. He or she uses a customer or another person to perform the transaction on his/her behalf so that it can be obscured to find the real person who made the transaction. It is found that the Beneficial Owner uses a customer to hide his or her identity and involves in illegal activities such as money laundering (ML), terrorist financing (TF), bribery, corruption, tax fraud, and other unlawful activities.
Published Date: 22/07/2023
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