We are seeking clarification in accordance to Article 3 (6) of the Directive (EU) 2015/849 (AMLD). If in a control chain of enterprises that involves a licensed corporate service provider as a part of the control chain of the target company and if the person controlling the service provider would therefore also qualify as beneficial owner? Member State A with cross border business in several countries in the EU and focused on private banking services has requested to provide consistent interpretation across the EU on a crucial issue as it is the determination of the beneficial owner in control chains that involves nominee shareholdings. From our experience, European supervisory authorities appear to have different approaches that provide uncertainty and a non level playing field: In the structure above the Limited Liability Company “Customer Limited” maintains a bank account and/or securities deposit account with a credit institution. The 100% shareholder of “Customer Limited”, “A Limited”, is another Limited Liability Company. “A Limited” in turn is held at 100% by the Limited Liability Company “Nominee Shareholder Ltd”. The 100% ultimate beneficial owner and shareholder of “Nominee Shareholder Ltd” is Person “B" (an individual). The “Nominee Shareholder Ltd” acts, however, as regards all 100% of the shares in “A Limited” solely as trustee on the basis of a trust agreement on behalf of Person “A” (an individual). The structure has been set up entirely by Person “A” for his participation in “Customer Limited”, involving the services of “Nominee Shareholder Ltd.”, that is active as a corporate service provider, duly registered and supervised in its country of residence. All amount used are stemming from Person “A”; Person “A” is also the only person to Our request is, to determine, whether Person “B” in this context must be considered as beneficial owner of “Customer Limited” – in addition to Person “A” – or not, and, whether there is a different approach to be taken if “Nominee shareholder Limited” is a licensed corporate service provider. We are of the view that Person “B” in this constellation does not qualify as beneficial owner, because it does not have any possibility of control over “Customer Limited”, as it is not in the position to direct “Nominee Shareholder Ltd.” in any way in using its voting rights in “A Limited”, as “Nominee Shareholder” is obliged to only act on the order of Person “A”. In addition, Person “B” is not entitled to any dividends out of the assets and profits of “Customer Limited”. From a formal perspective, though, Person “B” controls “Nominee Shareholder Ltd.”, in all other respects then in the control of the voting rights or assets of “A Limited”. In addition, we would be concerned on the consequence of Person “B” qualifying as a beneficial owner for the rules on the common reporting standard in accordance with Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation (“CRS”). Under the CRS rules, controlling persons of passive nonfinancial entity (NFEs) need to be reported as the owner of such entities for tax purposes, where, according to Section VIII Nr. 5. of the CRS rules, the term “controlling person” means a natural person who exercises control over the entity, where controlling person “must be interpreted in a manner consistent with the Financial Action Task Force Recommendations”. This linkage between the CRS rules and AML/CFT rules, in addition, is a strong indicator that only those persons that really control the entity and its assets qualify as “beneficial owner”, and not persons that might have “control” from a bare formal point of view. As mentioned above, we experienced different approaches in this matter from competent authorities in Europe, including countries where the legal approach is not clear at this stage.