Understanding who the ultimate beneficial owners are is crucial for businesses, especially in compliance with regulations like Know Your Business (KYB) and Know Your Customer (KYC). Financial institutions such as banks, investment firms, and insurance companies are obligated by regulators to identify and verify these owners to prevent illicit activities such as money laundering and terrorist financing.

When ultimate beneficial owners are not disclosed, it creates loopholes for individuals to exploit companies for unlawful activities. By prioritizing the identification of ultimate beneficial owners, countries and businesses can better combat financial crimes.

Utilizing tools like the UBO API enables financial institutions to efficiently identify and screen ultimate beneficial owners against sanction lists, watch lists, or politically exposed person (PEP) lists, helping them comply with regulatory requirements and mitigate risks associated with illicit activities.