Important compliance update: Ultimate Beneficial Ownership (UBO) disclosure requirements

What is Ultimate Beneficial Ownership (UBO)? 

In line with the Companies and Intellectual Property Commission (CIPC) Beneficial Ownership framework and enhanced Know Your Customer (KYC) requirements, businesses are required to identify and disclose individuals who hold 5% or more ownership, voting rights, or beneficial interest in a company.

While you may be familiar with the historically applied 25% ownership threshold used in certain KYC and compliance processes, the CIPC Beneficial Ownership regime has required the disclosure of beneficial owners holding 5% or more interest since 2023 – a much lower UBO percentage disclosure threshold, that is likely to apply to many more businesses.

What does this mean for Bob Pay merchants?

As part of our onboarding and ongoing compliance review process, merchants may be required to provide additional information and supporting documentation relating to all individuals who hold a 5% or greater ownership or beneficial interest in their business. 

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Why is Bob Pay asking for beneficial ownership details? 

This information will assist Bob Pay in meeting our regulatory obligations and maintaining a secure and trusted payments ecosystem for all our merchants and customers. 

At Bob Pay, we remain committed to providing secure, compliant, and reliable payment solutions while supporting merchants in meeting evolving regulatory requirements, including UBO compliance. 

What should merchants do?

To avoid delays during onboarding, account activation, or compliance reviews, please ensure that your beneficial ownership information is accurate, up to date, and readily available, including details of all individuals who hold a 5% or greater ownership interest in your business.

Where can I get more information about payment account compliance requirements ? 

To understand beneficial ownership disclosure and how it impacts your business, please contact Bob Pay on +27 (0)12 940 1067 or email [email protected]. 

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