UAE compliance guide
UBO: meaning and UAE rules
What an ultimate beneficial owner (UBO) is, how ownership and control are traced, and why UAE regulated firms must identify UBOs during KYB.
Short answer
UBO stands for ultimate beneficial owner: the natural person who ultimately owns or controls a company, directly or through layers of other entities. UAE companies must keep beneficial ownership records, and regulated firms must identify and verify the UBOs of business customers as part of KYB.
Last reviewed by the ITSEC compliance team. General information, not legal advice.
How is a UBO identified?
By tracing shareholdings and control through each layer of ownership until natural persons are reached. Where no one meets the ownership test, the person exercising control, such as a senior manager, is identified.
Check your regulator's rulebook for the ownership percentage it applies.
What evidence is used?
Trade license, registry extracts, shareholder registers, memorandum of association and identity documents for each UBO and director.
Frequently asked questions
- Is UBO the same as a shareholder?
- Not always. A shareholder can be another company. The UBO is always a natural person at the end of the chain.
- Do UBOs need to be screened?
- Yes. UBOs and directors are screened against sanctions and PEP lists like any individual customer.
Official sources
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