Refers to the natural person(s) 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. Under some sanctions programs (e.g. OFAC’s Russia/Ukraine sanctions program), companies and financial institutions are responsible for screening their customers for sanctioned entities or persons who might be beneficial owners holding at least 50 percent (see OFAC 50% Rule) ownership in other entities.

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