Article 55 Ownership structures involving legal arrangements or similar legal entities

This brief but important article addresses a specific scenario in the beneficial ownership chain: what happens when the entity holding an ownership interest or control over a corporate entity is itself a foundation-like legal entity (as defined in Article 57) or a legal arrangement such as a trust.

Rather than stopping the beneficial ownership analysis at that intermediate entity, Article 55 requires a look-through approach, meaning the beneficial owners of the corporate entity are ultimately the natural persons who are the beneficial owners of those intermediate structures.

It directly builds upon and connects to Article 57, which deals with beneficial ownership of foundation-like legal entities, and the rules on legal arrangements such as express trusts.

Important points:

• When identifying beneficial owners of a corporate entity, look through any intermediate legal entities (as defined in Article 57) or legal arrangements to find the natural persons who ultimately own or control those intermediaries.
• This rule applies whether the intermediate structure holds an ownership interest individually or cumulatively, or exercises control directly or indirectly.
• The article closes a potential gap in ownership transparency by preventing the use of trusts or foundation-like entities as an opaque layer within a corporate ownership structure.