The requirement of banks to gather additional information from legal entity (business) customers is referred to as the Certification Regarding Beneficial Owners of Legal Entity Customers, or “Beneficial Ownership”. It is aimed at helping government and law enforcement fight money laundering and terrorism by identifying exactly who benefits and controls a company.

With the continuing battle against drug trafficking, terrorism and money laundering it has emphasised the importance for banks and financial institutions (FIs) to enhance their compliance procedures. The aim is to clearly identify and verify who their customers are and where their funding originates with the ultimate goal of preventing money laundering or terrorist financing.