{"id":14144,"date":"2020-11-03T15:01:00","date_gmt":"2020-11-03T15:01:00","guid":{"rendered":"https:\/\/devalt-kambatiag.savviihq.com\/?p=14144"},"modified":"2023-09-12T14:31:48","modified_gmt":"2023-09-12T12:31:48","slug":"ubo-monitoring-how-to-make-your-compliance-process-more-efficient","status":"publish","type":"post","link":"https:\/\/www.altares.be\/en\/blog\/compliance\/ubo-monitoring-een-efficientieslag-voor-jouw-compliance-proces\/","title":{"rendered":"UBO monitoring: how to make your compliance process more efficient"},"content":{"rendered":"

Identifying UBOs is a fundamental legal obligation. However, uncovering and monitoring UBOs can pose tremendous challenges, made more difficult if information is lacking or inconsistent. With the regulatory authorities now recommending that companies monitor UBO information for changes, this will require further effort from compliance teams. So what is the most efficient way of organizing this process? Read on to discover our tips.<\/p>\n\n\n\n

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Knowing the UBOs of your business partners<\/h2>\n\n\n\n

An Ultimate Beneficial Owner is defined as \u2018a natural person who is the ultimate beneficiary of or who ultimately owns or controls a legal entity\u2019. Identifying your business partners\u2019 Ultimate Beneficial Owners (or \u2018UBOs\u2019) is one of the most important aspects of the KYC process. But why is it so important?<\/p>\n\n\n\n

First, it is necessary in order to be compliant with the government-imposed laws, such as the AML Directive and Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft). To comply with this legislation and not incur any fines, identifying UBOs has become a key aspect of the Know Your Customer process.<\/p>\n\n\n\n

Second, not knowing who your business partners\u2019 UBOs are could expose you to risks. You might unwittingly be doing business with a company that has links to arms trafficking, for example, or terrorist financing, slavery (even child slavery) or money laundering \u2013 and you can imagine the harm to your reputation! To avoid this risk, it is vital to identify the UBO \u2013 and to continually monitor any changes.<\/p>\n\n\n\n

Why you should actively track UBO changes<\/h2>\n\n\n\n

Not only do you need to know who your business partners of today are, you also need to know who they are tomorrow. Over time, ownership structures grow in complexity, as well as changing in other ways. If a new UBO appears on the scene, this could impact your organization\u2019s risks.<\/p>\n\n\n\n

Reasons to continually monitor UBOs:<\/p>\n\n\n\n