Risk Guide: Unveiling the Power of UBO Data in Third-Party Due Diligence

The Guide “Unveiling the Power of UBO Data in Third-Party Due Diligence“, explores the significance of Ultimate Beneficial Ownership (UBO) data in modern business.

UBO identifies the individuals controlling legal entities, crucial for regulatory compliance and fighting corruption. This Risk Guide traces UBO’s evolution, from early FATF recommendations to today’s global imperative. It highlights real-world cases like Petrobras’ bribery scandal and FIFA’s corruption, underscoring the consequences of lacking UBO information. Regulations, like OFAC’s 50 Percent Rule and the DOJ’s guidelines, make UBO data essential, especially with the upcoming U.S. FinCEN rules.

The Guide emphasizes the role of UBO data in identifying Politically Exposed Persons and State-Owned Enterprises, necessitating enhanced due diligence. It discusses the challenges of manual UBO verification, including errors and complex ownership structures, advocating automation for efficiency and compliance. The absence of a uniform global UBO register poses challenges, as requirements vary by jurisdiction.

The guide also highlights evolving EU standards, aligning with U.S. practices, and the need for adaptable solutions. In a business landscape with expanding third-party engagements, scalable UBO data solutions are essential for efficient onboarding and regulatory compliance.