What is the maximum number of beneficial owners identified under the control prong?

What is the maximum number of beneficial owners identified under the control prong?

• A. Two individuals
• B. One individual
• C. Four individuals
• D. Three individuals

Answer: (B)

The maximum number of beneficial owners identified under the control prong is one individual. The control prong of the beneficial ownership rule focuses on identifying a single individual who has significant responsibility to control, manage, or direct a legal entity customer. This individual can include executive officers or individuals who hold a significant ownership stake, but the regulation specifies that only one such person is required to be identified for compliance purposes. This is distinct from other ownership or more extensive definitions of beneficial ownership that may involve multiple individuals; the control prong is specifically concerned with designating one individual who has the ultimate decision-making power in relation to the entity’s assets and operations.

The maximum number of beneficial owners identified under the control prong is one individual. The control prong of the beneficial ownership rule focuses on identifying a single individual who has significant responsibility to control, manage, or direct a legal entity customer. This individual can include executive officers or individuals who hold a significant ownership stake, but the regulation specifies that only one such person is required to be identified for compliance purposes. This is distinct from other ownership or more extensive definitions of beneficial ownership that may involve multiple individuals; the control prong is specifically concerned with designating one individual who has the ultimate decision-making power in relation to the entity’s assets and operations.