Recital 109

The determination of the beneficial owner of a corporate entity in situations where the shares of the corporate entity are held in a legal arrangement, or where they are held by a foundation or similar legal entity, might be more difficult in view of the different nature and identification criteria of beneficial ownership between legal entities and legal arrangements. It is therefore necessary to set out clear rules to deal with those situations of multi-layered structure. In such cases, all beneficial owners of the legal arrangement, or of a similar legal entity such as a foundation, should be the beneficial owners of the corporate entity whose shares are held in the legal arrangement or held by the foundation.