What is Ultimate Beneficial Ownership (UBO)?

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What is a UBO?

An ultimate beneficial owner (UBO) is any individual who ultimately owns or controls a legal entity. This may not be the same person named on official company documents, as ownership or control can be held indirectly through holding companies, trusts, or similar arrangements.

A person qualifies as a UBO if they:

  • Own or control, directly or indirectly, more than 25% of the entity, or
  • Have the ability to exercise ultimate control over the entity

This includes individuals who do not hold shares directly but who exercise control through an intermediate structure such as a holding company or trust.

Why does Reap ask for UBO information?

When you sign up with Reap, we ask you to identify the individuals who ultimately own or control your business. Here is why this matters.

  1. It is a regulatory requirement, not just our policy. Regulators around the world require financial services providers to identify individuals who control a business. This is part of a global effort to prevent money laundering and fraud.
  2. It protects you too. Verifying beneficial ownership prevents bad actors from fraudulently opening accounts in your company's name or using your business as a vehicle for financial crime.

UBO disclosure is part of Reap's compliance obligations. This information must be collected and verified before an account can be activated or maintained.

What UBO information does Reap require?

For each identified UBO, Reap will typically require:

  • Full legal name
  • Date of Birth
  • Nationality
  • Job title
  • Residential address
  • Email address
  • A copy of a valid government-issued identity document, such as a passport or national identity card

Document requirements may vary depending on the individual's country of residence and Reap's assessment. Reap will confirm the specific requirements on a case-by-case basis.

Frequently Asked Questions

What if no one owns more than 25%?

If no individual meets the ownership threshold, Reap may still require identification of the person who exercises ultimate control. This is typically a senior executive, director, or another individual with final decision-making authority.

What if the company is owned by another company?

Where a legal entity is owned by another corporate entity, the ownership chain must be traced upward through each intermediate entity until a natural person is identified. That individual is the UBO.

Can a legal entity be declared as a UBO?

No. A UBO must always be a natural person. If a corporate entity holds shares or exercises control, the ownership chain must be traced further until an individual is identified.

Does the UBO's country of residence affect document requirements?

Yes. The identity documents accepted may vary depending on the individual's country of residence. Reap will confirm the specific requirements on a case-by-case basis.

Do all shareholders need to be declared as UBOs?

No. Only individuals who own or control more than 25% of the entity, or who exercise ultimate control, are required to be declared as UBOs.

Contact our Support Team

If you have questions or need assistance, contact our support team via the Live Chat in the Reap Dashboard (bottom right corner) or email us at hello@reap.global

For more information, visit Know who to talk to at Reap.

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