Recital 122

(122) Where legal entities and legal arrangements are part of a complex structure, clarity on their ownership or control structure is critical in order to ascertain who their beneficial owners are. To that end, it is important that legal entities and legal arrangements clearly understand the relationships by which they are indirectly owned or controlled, including all intermediary steps between the beneficial owners and the legal entity or legal arrangement itself, whether those relationships are in the form of other legal entities and legal arrangements or of nominee relationships. Identification of the ownership and control structure allows identification of the ways by which ownership is established or control can be exercised over a legal entity and is therefore essential for a comprehensive understanding of the position of the beneficial owner. The beneficial owner information should therefore always include a description of the relationship structure.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.