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New Regulations Requiring Beneficial Owners’ Identifying Information

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record all information that identifies each person who opens an account.  As of May 2018, financial institutions will also be required by new regulations to obtain, verify and record this same information on Beneficial Owners of most businesses who open accounts. 

For purposes of the new regulation, a Beneficial Owner is defined as an individual who own 25% or more of the business.  In addition, a Beneficial Owner is a single individual who has significant responsibility to control or manage the business. 

Businesses that will be affected by this new regulation include, corporations, limited liability companies, limited partnerships, general partnerships, business trusts created by a state office filing, any other business created by a state office filing, and similar businesses formed under laws of other countries. For purposes of the new regulation, these types of business are referred to as “Legal Entities”.

Businesses that will not be affected by this new regulation include sole proprietorships, trusts (other than trusts created by a state office filing), and unincorporated associations. 

Natural persons opening personal accounts will not be affected by the new regulation.

What the new regulation means for you:  Beginning April 1, 2018, when you open a Legal Entity business account, the Bank will ask you to provide the legal name, address, date of birth, tax identification number and a copy of the current I.D. of each Beneficial Owner of the business. 

More details regarding the new regulation can be found at:
https://www.gpo.gov/fdsys/pkg/FR-2016-05-11/pdf/2016-10567.pdf