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Important regulatory information.
FOR BUSINESS OWNERS
We are committed to keeping our customers informed of regulatory changes that may impact the way you do business with us. Effective May 11, 2018, federal regulations require all financial institutions to obtain, verify, and record information about the beneficial owners of all legal business entities that establish new deposit or loan accounts with the bank or in circumstances deemed necessary by the bank.
- What is Certification of Beneficial Owners of Legal Entities?
To help the government fight financial crime, Federal regulation requires certain financial institutions to obtain, verify, and record information about the beneficial owners of legal entity customers. Legal entities can be used to disguise involvement in terrorist financing, money laundering, tax evasion, corruption, fraud, and other financial crimes. Requiring the disclosure of key individuals who own or control a legal entity (i.e. beneficial owners) helps law enforcement investigate and prosecute these crimes.
- Who is required to complete the Certification of Beneficial Owners of Legal Entities form?
This form must be completed by the person opening a new account on behalf of a legal entity with any of the following U.S. financial institutions: (i) a bank or credit union; (ii) a broker or dealer in securities; (iii) a mutual fund; (iv) a futures commission merchant; or (v) an introducing broker in commodities.
For the purposes of this form, a legal entity includes a corporation, limited liability company, or other entity that is created by a filing of a public document with a Secretary of State or similar office, a general partnership, and any similar business entity formed in the United States of a foreign country. Legal entity does not include sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf.
- Who qualifies as a Beneficial Owner?
Each individual, if any, who owns, directly or indirectly, 25% or more of the equity interests of the legal entity customer (e.g., each natural person that owns 25% or more of the shares of a corporation; and
An individual with significant responsibility for managing the legal entity customer (e.g., a CEO, CFO, COO, Managing Member, General Partner, President, Vice President, or Treasurer).
- What do I need to bring with me to open the account?
For Each Beneficial Owner (may have up to 4 individuals) and at least one Controlling Member of the legal entity you will need to provide the following information:
- Full legal name
- Current physical address (no PO Boxes)
- Date of birth
- Social security number (or similar information in the case of foreign persons)