Beneficial Owner
/ˌbenɪˈfɪʃəl ˈəʊnər/
Definitions
- (n.) A person or entity who ultimately owns or controls an asset, property, or company, even if the title is in another name.
The bank requires disclosure of the beneficial owner of the account to comply with anti-money laundering regulations.
- (n.) The individual who enjoys the benefits of ownership, such as dividends or profits, regardless of whose name the title is registered under.
Though the shares are held by a nominee, the beneficial owner receives all dividends.
Forms
- beneficial owners
Related terms
See also
Commentary
In drafting, distinguish the beneficial owner from the legal owner; definitions should specify control or economic benefit rather than formal title to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.