What you need to know about beneficial ownership
Effective May 11, 2018, all banks were subject to new rules under the Bank Secrecy Act that will aid the government in the fight against crimes to evade financial measures to combat terrorism and other national security threats. This new rule requires covered financial institutions to identify and verify the identity of the beneficial owners of all legal entity customers.
Therefore going forward, each time an additional account is opened for a legal entity, customers will be asked for identifying information (name, address, date of birth, social security number), as well as identification documentation for:
— EACH individual that has 25% or more Beneficial Ownership in the Legal Entity; and,
— ONE individual that has Significant Managerial Control of the Legal Entity.
In order to make this process as efficient as possible, community banks suggest that customers obtain the above, bulleted information, along with a copy of the current Driver’s License for EACH identified individual. If the business will frequently be opening new accounts/loans or have certificates renew, please keep this information current and available to present EACH time you come in to establish a new account.
What is a “legal entity” customer?
Legal entity customers include the following entities created by filing with a state office or with a Secretary of State:
— Limited liability companies
— Limited partnerships
— General partnerships
— Business trusts
— Any other entity created by a filing with a state office
— Any similar entities formed under the laws of a non-US jurisdiction
For additional information on beneficial ownership, contact your community banker.