UBO stands for “ultimate beneficial owner.” In Pakistan, the concept of ultimate beneficial ownership refers to the natural person or persons who ultimately control and benefit from a company or other legal entity.
The concept of ultimate beneficial ownership is relevant in the context of anti-money laundering and counter-terrorism financing regulations, as it is used to identify and track the flow of funds through a company or other legal entity.
In Pakistan, the Securities and Exchange Commission (SECP) has introduced the requirement for companies to disclose their ultimate beneficial owners as part of its efforts to improve transparency and combat money laundering and terrorism financing. Under the Companies Act, 2017, companies are required to maintain a register of their ultimate beneficial owners and to disclose this information to the SECP upon request.
It’s worth noting that the ultimate beneficial owner of a company or other legal entity may not necessarily be the same as the registered owner or the person who holds legal title to the assets of the entity. The ultimate beneficial owner is the person or persons who ultimately control and benefit from the entity, regardless of their legal status or ownership interest.