How to understand review terminology?

Terminology Section: (Criteria for identifying UBOs)

What is a Legal Entity?

  • The processing entity that it is up for review

What is a Shareholder?

  • A shareholder is an individual who owns directly or indirectly 25% or more of the total shares of the company (UBO through ownership)

What is a Director?

  • A director is an individual who is responsible for the overall governance of the organization or company (UBO though control)

What is a Signatory?

  • A signatory is an individual who has the authority to sign on behalf of the company

What is a UBO?

UBO stands for Ultimate Beneficial Owner. There is two types of UBOs:

  • UBO by Ownership:
    • Individuals who directly or indirectly own 25% or more of the total shares, voting rights or other equity in the organization
  • UBO by Control:
    • Any individuals who exercise ultimate effective control in making decisions for the whole organization. If such an individual cannot be identified, then members of senior management must be identified as UBOs through control

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