Which description best defines the Control Prong?

• A. A natural person within the management with significant responsibility to control, manage or direct the legal entity
• B. A person who owns 25% or more
• C. A person who signs checks
• D. A person who handles day-to-day customer service

Answer: (B)

The control prong identifies who is considered the beneficial owner based on ownership or controlling rights within the entity. In AML frameworks, a threshold is used to flag individuals who hold enough influence to affect decisions or profits. The most common and widely used criterion is ownership of 25% or more of the entity, because this level generally signals substantial influence over how the company is run and how profits are distributed. That is why describing a person who owns 25% or more as the control prong best fits the concept.

Roles like a manager with significant responsibility, someone who signs checks, or someone who handles day-to-day client service describe positions with operational authority, but they do not by themselves establish beneficial ownership or control unless they also meet the ownership or other control criteria (such as the ability to appoint or remove a majority of the board).