Identifying Ultimate Beneficial Ownership is important to remove anonymity and identify the actual individuals behind a transaction.
An ultimate beneficial owner is an individual that benefits from or is impacted positively from a company even though they are not formally named as the owner of a business. It is a person within the parent company that owns or controls over 25% of the company shares, has the right to exercise significant control over the company and/or has the right to remove the majority of the board of directors. A UBO is formally defined as a person with significant control at the ‘top of a tree’ in a business.