Beneficial owner (patiesā labuma guvējs)

A beneficial owner (patiesā labuma guvējs) is the natural person who owns or controls a legal entity, for example by holding more than 25 percent of its shares or voting stock directly or indirectly. Legal entities registered in Latvia must report their beneficial owners to the Enterprise Register.

The definition is in the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing. A beneficial owner is always a human being, never another company: if an SIA is owned by another company, you follow the chain to the person who controls it at the end.

An entity registered in the Enterprise Register files its beneficial owner, or any change, within 14 days of learning of it. When the management board asks, a member must tell the company within two weeks who the beneficial owner is if control is exercised through that member.

A beneficial owner is not the same as a member. A member is entered in the register of members; a beneficial owner may control the company through another company or through someone else.