Important Information About Opening a Legal Entity Account
New rules under the Bank Secrecy Act went into effect on May 11, 2018 to aid the government in the fight against crimes to evade financial measures designed to combat terrorism and other national security threats.
EACH time an account is opened for a covered Legal Entity, we are required to ask you for identifying information (name, address, date of birth, social security number as well as identification documents) for:
- Each individual that has beneficial ownership (25% or more); and,
- One individual that has significant managerial control, of the Legal Entity.
If you are opening an account on behalf of a Legal Entity, you will be required to provide the appropriate documentation and to certify that this information is true and accurate to the best of your knowledge.
We proudly support all efforts to protect and maintain the security of our customers and our country.
What is considered a covered legal entity?
For the purposes of this rule, 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 or a foreign country. Legal entity does not include sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf.
Who is considered a beneficial owner?
- Each individual, if any, who owns, directly or indirectly, 25 percent or more of the equity interests of the legal entity customer (e.g., each natural person that owns 25 percent or more of the shares of a corporation); and
- An individual with significant responsibility for managing the legal entity customer (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer).
What information is needed for beneficial owners?
The name, address, date of birth and Social Security number (or passport number or other similar information, in the case of Non-U.S. Persons) for each beneficial owner are needed. We may also ask to see a copy of a driver’s license or other identifying document for each beneficial owner
Contact us at 608.643.3393 if you have questions about opening an account on behalf of a legal entity.