How can I understand the periodic risk review terminology?

Periodic risk review terminology

This table explains the terms used in your Periodic Risk Review. They are used as criteria for identifying UBOs.

Term

Definition


Legal Entity

The processing entity that it is up for review


Shareholder

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


Director

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


Signatory

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


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