ECSH45791 - Who needs to be declared as a beneficial owner officer or manager (BOOM)

Beneficial Owners, Officers, and Managers (BOOMs) who must be declared on the application include:

Beneficial owners

  • Shareholders who own shares or voting rights of more than 25%.
  • Owners.
  • Trustees.

Officers

  • Nominated officers and directors.
  • Company secretaries.
  • Chief executives.
  • Persons controlling the company.
  • Members of the management committee of a corporate body.
  • An officer or governing body member of an unincorporated association and any partner.
  • Secretaries or similar officers of a partnership.
  • Any person acting or claiming to act in any of the above roles.

Managers and senior managers

A manager or senior manager does not need to have “manager” in their job title to be considered a BOOM under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). Any person who is responsible for either of the activities below must be included in a business’ registration.

  • Make decisions affecting compliance with MLR 2017.
  • Are responsible for regulated activities.

Identifying beneficial owners

When a business has multiple shareholders, it is only those who own more than 25% of the shares or voting rights that are considered beneficial owners and need to be added to the application form.

If the beneficial owner of a business is itself another business, then all the beneficial owners with shares or voting rights over 25% from that linked business also need to be added to the application. This chain of ownership continues until all the beneficial owners with shares or voting rights of more than 25% for all the linked businesses have been identified. Beneficial owners from these businesses are required to be included in a business’ registration. Officers and managers of the linked business are not required to be added to the application.

Managers

Managers who are not routinely involved in the anti-money laundering, counter terrorist financing, or counter proliferation financing policies and procedures of the business may not need to be added to the registration as a BOOM such as a facilities manager or a human resources manager.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Insolvency Practitioners

There may be times when an insolvency practitioner is appointed for a business that is in administration, liquidation or voluntary arrangements to manage it's debt. It is unlikely that you will see this in an intial registration application.

Insolvency practitioners’ work can involve:

  • Selling the assets of the person or company who owes money to help them pay off their debts;
  • Collecting money due to the person or company;
  • Agreeing creditors’ claims; and
  • Distributing the money collected after paying costs.

Insolvency practitioners are regulated under MLR 2017, but are not usually supervised by HMRC.

Where a business is supervised by HMRC, and an insolvency practitioner is appointed, they do not usually need to be added as a BOOM.