Beneficial Ownership Rules

Categories: General

Beginning May 11, 2018, all financial institutions must comply with new rules when opening accounts for legal entities (corporations, partnerships and LLCs).  The legal entity must now provide identifying information about the beneficial owners of the company.  A beneficial owner is an individual who owns, directly or indirectly, 25% or more of the equity interest in the legal entity company opening the account.  A beneficial owner also includes the individual with significant responsibility for managing the company, for example the President, CEO, CFO, COO, Treasurer, Managing Manager or General Partner.  The person opening the account on behalf of the business must sign a Certification of Beneficial Owners form that provides the name, address, date of birth and Social Security number or passport number for all individuals that qualify as beneficial owners.  A copy of each beneficial owner’s ID must also be provided with the form.