--- title: Everything You Need to Know About Ultimate Beneficial Owners [Part 1] | nCino KYC description: A UBO is the natural person who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. image: https://blog.kycafrica.ncino.com/hubfs/Business%20man%20looking%20through%20a%20filling%20cabinet%20with%20illustrated%20diagram%20of%20UBO%20structure.png --- [![Docfox is now nCino KYC](https://blog.kycafrica.ncino.com/hubfs/nCino-KYC-Top-Web-Banner-HS.png)](https://blog.kycafrica.ncino.com/ncino-kyc-africa-a-vision-to-reinvent-the-future-of-fica-compliance) [![Ncino KYC Africa](https://blog.kycafrica.ncino.com/hs-fs/hubfs/raw_assets/public/ncino-theme-2025/images/ci/ncino-logo-color-invert-RGB.png?width=140&name=ncino-logo-color-invert-RGB.png "Ncino KYC Africa")](https://kycafrica.ncino.com/) - [Solutions](https://kycafrica.ncino.com/solutions/) - [Client Onboarding](https://kycafrica.ncino.com/solutions/customer-onboarding/) - 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[Press Releases](https://kycafrica.ncino.com/press/) - [Contact](https://kycafrica.ncino.com/contact/) - [Knowledge Base](https://kycafrica.ncino.com/#elementor-action%3Aaction%3Dpopup%3Aopen%26settings%3DeyJpZCI6IjI1MDkyIiwidG9nZ2xlIjpmYWxzZX0%3D) [Sign In](https://kycafrica.ncino.com/#elementor-action%3Aaction%3Dpopup%3Aopen%26settings%3DeyJpZCI6IjE2NzI3IiwidG9nZ2xlIjpmYWxzZX0%3D) [Request a Demo](https://kycafrica.ncino.com/request-a-demo/) Sept 29, 2026 # Everything You Need to Know About Ultimate Beneficial Owners \[Part 1\] ![Everything You Need to Know About Ultimate Beneficial Owners \[Part 1\]](https://blog.kycafrica.ncino.com/hubfs/Business%20man%20looking%20through%20a%20filling%20cabinet%20with%20illustrated%20diagram%20of%20UBO%20structure.png) SHARE ``` In this series of everything you need to know about Ultimate Beneficial Owners (UBOs), we will dig a little deeper into questions like, what are UBO’s and why they matter, what are the challenges faced when trying to identify UBO’s and we will conclude our series with a look into how Accountable Institutions can identify and manage UBO’s. ``` ## **Why UBOs Matter** Those with less honourable intentions may seek opportunities to retain control over criminally derived assets by inhibiting the ability of law enforcement to trace the origin and ownership of assets. Companies, trusts, and other similar legal arrangements are seen by criminals as potentially useful vehicles to achieve this outcome. The only way for businesses to prevent criminals from using complex structures or legal persons to conceal true ownership is by assessing their clients and truly understanding who profits from and operates the business. This is where the concept of identifying UBOs becomes critical. There are a number of local and international scandals, such as the Pandora papers and the tender fraud case surrounding “Cat” Matlala as well as Bosasa Cash and Trust Network. Cases such as these emphasize the need for rigorous customer due diligence (CDD) and accelerated regulatory drive for enhanced ownership disclosure and transparency. To mitigate your risk of unknowingly becoming engaged with an entity that has something to hide, beneficial ownership identification and verification have become essential components of the Know Your Client (KYC) process. ## **Defining Ultimate Beneficial Owners** ### What is a UBO? The Financial Action Task Force (FATF) defines an Ultimate Beneficial Owner as **the natural person who ultimately owns or controls a customer** and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement. An UBO is effectively the person at the top of “the tree”, who has ultimate benefit from, or ultimate control of, an entity and its operations. ### Who is a UBO? Typically, a UBO is: - The majority shareholder of a company, or - A person who holds at least 5% of shares in the company However, not all entities have a majority shareholder or even shareholders at all. **In cases without clear majority shareholding**, you can take a risk-based approach and use a process of elimination, looking first for ownership, and then control. For different entity types such as listed companies, trusts , private companies etc – there will be different types of “shareholders” to look out for. You can learn more about these in our UBO training session. ## **Understanding Beneficial Ownership Categories** Beneficial ownership falls into three distinct categories: ### 1. Controlling Ownership The natural person who holds 5% or greater shareholding in a proprietary company or entity. This is the most straightforward form of UBO identification. ### 2. Controlling Rights Those who exercise controlling rights over a legal person, even without significant shareholding. Examples include: - Elected Chairperson of a residential management company - Board members with decision-making authority - Parties with contractual rights to control operations ### 3. Management Control Those who exercise executive management control over a legal person, particularly relevant for larger corporate structures. Examples include: - Chief Executive Officer (CEO) - Chief Financial Officer (CFO) - Chief Operating Officer (COO)   [Click here to read part 2 of the series.](https://blog.kycafrica.ncino.com/ultimate-beneficial-owners-challenges) ![Hawken McEwan](https://blog.kycafrica.ncino.com/hubfs/Hawken.png) ### About the author: ### Hawken McEwan Hawken has over 25 years' experience in financial crime compliance, regulatory operations, banking operations, risk and change. Specialising in FICA and financial related crime, Hawken holds a Masters from the Edinburgh University, the AMLCPrac(SA) designation, and is a Certified Anti Money Laundering Specialist. He is actively involved with industry bodies and is a Member of the Association of International Financial Crime Investigators and South African Board member for ACAMs. ## Related Articles - ### [Important FIC Regulatory Updates: Directive 10, Draft Directive 12 & Guidance Note 7B](https://blog.kycafrica.ncino.com/fic-updates-directive-10-draft-directive-12-guidance-note-7b) ![Important FIC Regulatory Updates: Directive 10, Draft Directive 12 & Guidance Note 7B](https://blog.kycafrica.ncino.com/hubfs/Important%20FIC%20Regulatory%20Updates_%20Directive%2010%2c%20Draft%20Directive%2012%20%26%20Guidance%20Note%207B.jpg) - ### [The Key Requirements That Need to be Met in Order to be FICA Compliant](https://blog.kycafrica.ncino.com/the-7-key-requirements-that-need-to-be-met-in-order-to-be-fica-compliant) ![The Key Requirements That Need to be Met in Order to be FICA Compliant](https://blog.kycafrica.ncino.com/hubfs/The%20Key%20Requirements%20That%20Need%20to%20be%20Met%20in%20Order%20to%20be%20FICA%20Compliant.jpg) - ### [Accountable Institutions Under FICA: Complete List and Compliance Obligations](https://blog.kycafrica.ncino.com/accountable-institutions-under-fica-complete-list-and-compliance-obligations) ![Accountable Institutions Under FICA: Complete List and Compliance Obligations](https://blog.kycafrica.ncino.com/hubfs/nCino-KYC-Accountable-Institutions-Under-FICA-Complete-List-and-Compliance-Obligations-1.jpg) - ### [RMCP Compliance: What Directive 10, 12 and GN 7B Require](https://blog.kycafrica.ncino.com/rmcp-compliance-what-directive-10-12-and-gn-7b-require) ![RMCP Compliance: What Directive 10, 12 and GN 7B Require](https://blog.kycafrica.ncino.com/hubfs/RMCP%20Compliance_%20What%20Directive%2010%2c%2012%20and%20GN%207B%20Require.jpg) - ### [5 Examples of KYC According to the FIC Act](https://blog.kycafrica.ncino.com/5-examples-of-kyc-according-to-the-fic-act) ![5 Examples of KYC According to the FIC Act](https://blog.kycafrica.ncino.com/hubfs/nCino-KYC-5-Examples-of-KYC.jpg) ![nCino Full colour Logo](https://blog.kycafrica.ncino.com/hubfs/nCino%20Full%20colour%20Logo.svg) Subscribe to our newsletter [Subscribe](https://share-eu1.hsforms.com/1EGe3layITCaXlgtYEX6fSwetu2j) - - - - ### Solutions - [Client Onboarding](https://kycafrica.ncino.com/solutions/customer-onboarding/) - [Watchlist](https://kycafrica.ncino.com/solutions/watchlist-screening/) - [Risk Rating](https://kycafrica.ncino.com/solutions/risk-rating/) - [Bank Account Verification](https://kycafrica.ncino.com/solutions/account-verification/) - [Compliance Services](https://kycafrica.ncino.com/solutions/compliance-services/) - [Training and Webinars](https://kycafrica.ncino.com/solutions/training-and-webinars/) ### Industries - [nCino for Banks](https://www.ncino.com/) - [High Value Goods Dealers](https://kycafrica.ncino.com/industries/high-value-goods-dealers/) - [Law Firms](https://kycafrica.ncino.com/industries/law-firms/) - [Real Estate Industry](https://kycafrica.ncino.com/industries/real-estate-industry/) - [Stock Brokers](https://kycafrica.ncino.com/industries/stock-brokerage/) - [Forex Traders](https://kycafrica.ncino.com/industries/forex-traders/) - [Financial Service Providers](https://kycafrica.ncino.com/industries/financial-advisors/) - [Credit and Lending](https://kycafrica.ncino.com/industries/credit-and-lending/) - [Motor Vehicle Dealers](https://kycafrica.ncino.com/industries/motor-vehicle-dealers/) - [Other Accountable Institutions](https://kycafrica.ncino.com/industries/other-accountable-institutions/) ### Company - [About](https://kycafrica.ncino.com/about/) - [Press Releases](https://kycafrica.ncino.com/press/) - [Careers](https://www.ncino.com/our-company/careers) - [Contact](https://kycafrica.ncino.com/contact/) - [Partner with us](https://kycafrica.ncino.com/industries/our-partners/) - [FICA FAQ's](https://kycafrica.ncino.com/fica-faqs/) ### Legal & Compliance - [Terms and Conditions](https://kycafrica.ncino.com/terms-and-conditions/) - [Privacy Statement](https://kycafrica.ncino.com/privacy-policy/) - [PAIA Manual](https://kycafrica.ncino.com/wp-content/uploads/2025/03/nCino-SA-PAIA-Manual-March-2025-2.pdf) - Cookie Settings © 2016 – 2026 nCino. 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