Module: General Practice
Q25: Under the KYC Directions, 2025, a "Beneficial Owner" (BO) is determined based on controlling ownership interest. What is the specific ownership threshold for determining the Beneficial Owner of a Company versus a Trust?
✅ Correct Answer: B
Concept: Beneficial Owner (BO) refers to the natural person(s) who ultimately own or control a juridical person.
The Structure (Thresholds): 1. Company: The BO is the natural person having a controlling ownership interest of more than 10% (reduced from the earlier global standard of 25% in older years) of the shares, capital, or profits.
2. Trust: The BO includes the author, trustees, and beneficiaries with 10% or more interest in the trust, or any natural person exercising ultimate effective control.
3. Partnership / Unincorporated Association: The threshold is more than 15% of property/capital/profits.
Key Nuance: Note the distinction: Companies/Trusts are pegged at the 10% mark, whereas Partnerships/Associations are at 15%.
The Structure (Thresholds): 1. Company: The BO is the natural person having a controlling ownership interest of more than 10% (reduced from the earlier global standard of 25% in older years) of the shares, capital, or profits.
2. Trust: The BO includes the author, trustees, and beneficiaries with 10% or more interest in the trust, or any natural person exercising ultimate effective control.
3. Partnership / Unincorporated Association: The threshold is more than 15% of property/capital/profits.
Key Nuance: Note the distinction: Companies/Trusts are pegged at the 10% mark, whereas Partnerships/Associations are at 15%.