Which statement about beneficial owners is accurate?

Beneficial owners encompass individuals who ultimately own or control a legal entity, which extends beyond just the direct owners. This means that significant controllers, such as those who hold substantial voting rights or have the power to influence decisions, also qualify as beneficial owners. Understanding this broader definition is crucial for effective compliance with regulations requiring the identification of those who truly benefit from the activities of a business, making it necessary to look beyond mere ownership stakes.

In contrast, the other options present a more limited or inaccurate view of what constitutes beneficial ownership, overlooking the complexity of ownership structures and control within organizations. This accurate definition plays a significant role in the context of enforcing Anti-Money Laundering (AML) and combating the financing of terrorism (CFT) regulations, ensuring accountability and transparency in business operations.