What is a Beneficial Owner as per PMLA Act 2002?
Updated
A beneficial owner is an individual or entity that ultimately owns or controls a company or asset, either directly or indirectly. The beneficial owner is the true owner of the company or asset, even if the legal ownership is held by another individual or entity.
Where the client is a company, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has a controlling ownership interest or who exercises control through other means.
Where the client is a partnership firm, he beneficial owner is the natural person(s) who, whether acting alone or together, or through one or more juridical person, has ownership of entitlement to more than fifteen per cent. of capital or profits of the partnership;
where the client is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person.
where the client is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee.
where no natural person is identified under (a) or (b) or (c) above, the beneficial owner is the relevant natural person who holds the position of senior managing official;
where the client or the owner of the controlling interest is an entity listed on a stock exchange in India, or it is an entity resident in jurisdictions notified by the Central Government and listed on stock exchanges in such jurisdictions notified by the Central Government, or it is a subsidiary of such listed entities, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such entities.
