Beneficial Ownership – What you need to know
Beginning on May 11, 2018, all banks will be subject to a new rule under the Bank Secrecy Act intended to assist the government and law enforcement in the ongoing fight against money laundering and the financing of terrorism. When an account is opened on behalf of a business, or covered “legal entity,” we will be required to ask you for certain identifying information of the “beneficial owners” of the business.
The rule defines a beneficial owner as:
- Each individual that has 25 percent or more of the equity interest in the business (ownership prong); and
- One individual that has the authority to exercise control of the legal entity (such as a CEO, executive officer or treasurer) otherwise known as “control prong”
- Each time a new account is opened, you will be required to provide the following information for each Beneficial Owner:
- Date of Birth
- Social Security number or Passport number and country of issuance, or other similar identification
- In addition, you will need to provide a legible copy of each Beneficial Owners identification and signed certification form attesting to the accuracy of the information provided. This information must be collected whether or not the individuals are bank clients.
If your business will frequently need to open new accounts or loans with us, please keep this information current and on file for future use.
If you have any questions, please don’t hesitate to contact us at (812)283-0724. We greatly appreciate your business and look forward to helping grow your business together.