Are beneficial owners really those indicated on the documentation ?
The ultimate beneficial owner is necessarily an individual.
We must distinguish between the beneficial owner and :
– The client/supplier, who could be a natural or legal person, or a legal structure without legal personality;
– The person in relation to the client/supplier,
– Contract or transaction’s recipient:
- for funds’ transfers, the beneficiary means the natural or legal person who is the final recipient of funds;
- in insurance’s field, the beneficiary is a natural or legal person designated by the subscriber to receive the benefits guaranteed under the contract or transaction.
In banking and insurance, knowing the real economic beneficiaries of an operation is required to fight against money laundering and terrorism .
In order to avoid corruption and to comply with the requirements of corporate social responsibility it is important to inquire about the economic beneficiaries of an operation.
Due diligence performed on a beneficiary can protect the reputation of a company.