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Two laws – two almost identical sets of criteria

Last updated: 23 January 2023.

The criteria are different in the Act on Register of Beneficial Owners and the Money Laundering Act when it comes to whether a person is considered as a beneficial owner.

Beneficial owner according to the Beneficial Owners Act

  1. Risk-based approach is not relevant because identification of beneficial owners is objective
  2. Close family members’ ownership and control are not automatically aggregated. Several owners can, however, agree to collaboration exceeding 25.01 percent. This also  includes agreements in statutes, memorandum of association, shareholder agreements, or other internal agreements
  3. By indirect control through intermediate businesses, a beneficial owner in business C must control 50 percent or more in business B, which in turn controls 25.01 percent or more in business A
  4. Politically exposed individuals are not to be registered
  5. Subsidiaries of listed businesses must identify their beneficial owners

Beneficial owner according to the Money Laundering Act

  1. A risk-based approach should be assessed and may lead to be considered a beneficial owner
  2. Ownership of close family members and control are to be aggregated
  3. By indirect control through intermediate businesses, a beneficial owner in business C must control 25.01 percent or more in business B, which in turn controls 25.01 percent or more in business A
  4. Politically exposed individuals and their closely related must be identified
  5. Majority owned subsidiaries of listed businesses are exempt from the requirement to identify their beneficial owners