In order to comply with a May 2016 federal regulation related to preventing financial crime, all banks and credit unions must collect information about the “beneficial ownership” of all of our non-exempt legal entity clients. This regulation goes into effect beginning May 11th, 2018. Both new and existing legal entity customers affected by the regulation will need to provide identifying information when opening or maintaining an account.
Customer Due Diligence Requirements For Financial Institutions
This is the name of the final rules passed by the Treasury’s Financial Crimes Enforcement Network (FinCEN) under the Bank Secrecy Act for the purpose of requiring financial institutions to know “the identity of the individuals who own or control their legal entity customers” (also known as beneficial owners). This regulation is intended to close a loophole that currently makes it possible for financial criminals to remain anonymous within the banking and finance system.
How are legal entities and beneficial owners defined?
Legal entity customers include corporations, limited liability companies, partnerships, and any other entities established through the filing of a public document in the United States or under foreign jurisdiction. The regulation divides beneficial owners into two categories:
- Ownership: Any individual who owns 25 percent or more of the equity interests of the legal entity.
- Control and Management: Any individual with “significant responsibility to control, manage, or direct” the legal entity. This could include the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer.
What information will be collected and how?
CBTFL will collect a certification form from all legal entity customers at the time a new account is established or as necessary for account maintenance. The information required by law includes the name, address, birth date, and Social Security (or passport, in the case of non-US citizens) number for up to four beneficial owners and the “control” person. The person who opens the account and/or fills out the form on behalf of the legal entity must also identify themselves by name and title.
In addition to completing the certification form, a CBTFL employee may ask to view original documents or copies that verify the identity of the beneficial owners.
Who will CBTFL share this information with?
CBTFL will treat the personal and sensitive data on your Beneficial Ownership Certification Form with the same care and confidentiality we use to handle all of our customer information. Beneficial ownership records will be maintained and securely stored internally. This information will only be used to comply with existing federal regulations.
CBTFL Is Committed To Protecting Your Personal Information
Within the personalized customer service we provide is a commitment to protect your privacy and personal information. Rest assured that our professional team of employees is dedicated to protecting your sensitive data every day. To that end, CBTFL uses security measures including computer safeguards and secured files and buildings that comply with federal law. If you have any additional questions or concerns about the Beneficial Ownership Certification Form, please give us a call at 352-369-1000 or 888-388-1007 or visit your nearest branch location in Marion, Alachua, or Sumter County.