lifting the veil of secrecy and understanding the transparency of ultimate ownership

© Adobe Stock / Pixel-Shot

What is Ultimate Beneficial Ownership Transparency?

Imagine a puppet show, with the puppets moving gracefully across the stage, controlled by invisible strings from above.

At first glance, it seems that the puppets are independent and determine their own movements. But in reality, there is a hidden puppeteer who holds the real power.

In many ways, legal entities (such as shell companies with hidden owners) are like the puppet show. Like the puppets on stage, we can see the company and its managers, but the real source of influence – the puppeteers, or ultimate owners of these entities – are hidden behind the scenes.

A beneficial owner is the person who ultimately owns, profits from, or directs a business vehicle, such as a corporation. Although they remain out of the picture, these beneficial owners control or influence the direction of the business while benefiting from its profits.

If such companies are successful, other companies lose money, governments cannot find out who is bidding for contracts, and the public cannot determine who funds political parties.

Transparency about ultimate ownership is like the curtain rising on a puppet show and it becomes clear who is really pulling the strings: the real owner.