Beneficial Ownership: Frequently Asked Questions
As a federally chartered bank, Resolute Bank must adhere to new regulations requiring us to identify and verify the beneficial owners who own or control our legal entity clients when they open an account or perform certain maintenance to your existing accounts. We want to make this transition as seamless as possible for our clients. So, we’ve compiled these FAQs to help you learn more about the new beneficial ownership regulations.
What does “beneficial ownership” mean?
“Beneficial ownership” refers to a new regulation requiring federally regulated financial institutions to identify and certify the identity of beneficial owners of legal entity clients, subject to certain exclusions and exemptions.
Why does Resolute Bank have to comply with this new regulation?
As a federally chartered bank, Resolute Bank is required to comply with this regulation.
What is a “beneficial owner”?
The regulation defines a beneficial owner of a legal entity client as the following:
- Each individual who directly or indirectly owns 25% or more of the equity interests of a legal entity client (this is known as the “ownership prong”).
- A single individual with significant responsibility to control, manage or direct a legal entity client, including an executive officer or senior manager (this is known as the “control prong”).
What type of information will Resolute Bank need to collect from me?
We will provide the individual opening a new account with a Certification Form to complete. To complete the form, the following items will be required for each Beneficial Owner:
- A copy of an unexpired Government issued IDwith a current physical address. (This document contains most of the information needed to complete the Certification Form such as the beneficial owner’s name, date of birth and address.)
- A social security number. (Note: Non-US persons will need to provide a different ID number.)
- Any other documentation requested by the bank. (In a few cases, we may need additional documentation on your business or beneficial owners. If that is the case, we will contact you.)
Do you have to obtain the information directly from the beneficial owners?
No. The regulation requires that we obtain information about the beneficial owners of a legal entity from the individual seeking to open a new account on behalf of the legal entity client. The individual could, but would not necessarily, be a beneficial owner.
Is Resolute Bank required to obtain beneficial information on existing accounts?
When you perform certain maintenance to an existing account you will be asked to provide beneficial ownership information.
When am I required to provide beneficial information on my existing account?
Beneficial information is required when changing signers on your existing accounts or when there is a change in beneficial owners. It is also required on line of credit renewals.
What is a “legal entity client”?
Under this regulation, a legal entity client is defined as a corporation, limited liability company, other entity created by the filing of a public document with a Secretary of State of similar office, a general partnership, and any similar entity formed under the laws of a foreign jurisdiction that opens an account. The definition also includes limited partnerships, business trusts that are created by a filing with a state office, and any other entity created in this manner.
When will Resolute Bank begin enforcing the beneficial ownership requirements?
We will begin implementing and complying with the beneficial ownership regulations on May 7, 2018.
Who should I contact if I have questions about beneficial ownership?
You may call Resolute Bank at (419) 868.1750 or reach out to a member of our team directly.