A beneficial owner refers to the natural person who ultimately owns or controls a legal entity, such as a corporation, or who has a significant economic interest in a transaction. It is a term used in the context of anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. The concept of beneficial ownership is important as it helps financial institutions and law enforcement to identify the individuals behind legal entities and track the flow of funds to detect any potential illicit activity. In some cases, the beneficial owner may not be the same as the legal owner listed in public records. The identification and verification of beneficial ownership information is a key component of AML/CFT compliance.