Business Account Requirements - Beneficial Owners of Legal Entities
For Our Business Customers:
When you open a new account or apply for a new loan on or after May 11, 2018, you will be required to provide information about your beneficial owners.
A Beneficial Owner is:
- Each individual who owns 25% or more of the company.
- One individual who has significant managerial responsibility for the company.
Why We Need this Information.
Section 326 of the USA PATRIOT Act requires that financial institutions identify and verify the identity of the beneficial owners of all legal entity customers at the time a new account is opened. The identification and verification procedures for beneficial owners are very similar to those you currently follow as individual customers. Each time a business account is opened we are required to ask for identifying information for each individual who has beneficial ownership (25% or more) and one individual who has significant managerial control of the business.
What Businesses are Affected?
The rule applies to legal-entity businesses such as a corporation, limited liability company, and general partnership, or other entity created by a filing of public document with a Secretary of State or similar office. Businesses such as sole proprietorships, estates, trusts, U.S. and state government entities, registered insurance companies, publicly-traded companies and subsidiaries and unincorporated associations such as scout troops, youth sport leagues are generally exempt from the requirements.
For Existing Customers:
If you open an additional account or renew or secure a new loan, ownership information must be provided.