Disclosure of UBO
In order to enable Taiwan’s government to determine whether the foreign investor is controlled or significantly affected by China, clarifying the investment structure and disclosing UBO (ultimate beneficiary owners) are first steps and most crucial. Sometimes the disclosure of ultimate beneficiary owners is not that easy, especially with complicated investment structures and numerous parties involved.
Definition of “significantly affected by China”
The definition of “significantly affected by China” is as below, and, therefore, we are required to disclose at least 70% of the UBOs who are not Chinese:
- More than 30% of the foreign investing company is held by Chinese shareholders directly or indirectly, or
- Chinese people in the board.
Please note the definition of UBO and purpose of identifying them here is different from Bank’s anti-money laundering procedures. And the disclosure of only material UBOs who own more than 25% is not sufficient.