What type of entities are only subject to the control criteria prong for the definition of "beneficial owner"?

The definition of "beneficial owner" is crucial in understanding compliance requirements under the Bank Secrecy Act (BSA). Entities that fall under the control criteria prong are those where the control aspects are more relevant than ownership stakes. Non-profit corporations are a specific category where the focus shifts to individuals who control the entity, rather than traditional ownership structures, which may not apply in the same way as with for-profit entities.

This means that for legal entities established as non-profit corporations, the emphasis is on who has the authority or power to influence the decisions of the organization, rather than who owns a percentage of it. Thus, it is essential to identify the individuals who control these entities to accurately assess beneficial ownership as defined by regulations. This focus aligns with compliance objectives to ensure that those who operate or manage the entity are recognized and subjected to the necessary scrutiny.

In contrast, other entity types listed do not limit the identification of beneficial ownership solely to the control criteria, as ownership structures, profit motives, or relevant thresholds usually apply. This makes the inclusion of non-profit corporations significant in understanding the principles of beneficial ownership in the context of BSA compliance.