Most of the countries have legislation related to UBOs. The aim is to identify any illegality in the business. This is as per the requirements of regulations related to money laundering, Know Your Customers (KYC), bribery, corruption, and terrorism financing.
By identifying the UBO, the government, regulatory authorities, and other businesses intending to do business with an entity know about the entity. Thus, the main objective behind UBO requirements is to safeguard oneself from engaging in business with an entity that conducts criminal activities