What is a beneficial owner? Why banks ask who really owns a business
By SendPay Business · · 2 min read
A beneficial owner is the real person who ultimately owns or controls a business, even if the shares are held through other companies or by someone else on their behalf. Banks and payment firms must find out who they are before opening a business account.
The usual test
- Owning more than 25% of the shares, directly or through other companies.
- Holding more than 25% of the voting rights.
- Having the right to appoint or remove most of the board.
- Otherwise having significant influence or control over the business.
The UK register
UK companies must record their people with significant control (PSCs) and file them at Companies House, using broadly the same tests. A bank will often check that register, then ask for ID from each beneficial owner.
Why firms ask
Anti-money laundering rules require banks and payment firms to know who is really behind a business, so that criminals can't hide behind layers of companies. It's part of what's often called KYB, or know your business.
Where SendPay fits
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.