Skip to main content

Beneficial Ownership

Posted on: Wednesday, March 18, 2020-4:51 PM

Important Information About Opening a Legal Entity Account

When you open a new business account or apply for a new business loan on or after May 11, 2018, you will be required to provide information about your beneficial owners. A beneficial owner is:

  • Each individual who owns 25% or more of the company.
  • One individual who has significant managerial responsibility for the company. 

You will need to provide us with the following information on your beneficial owners:

  • Name
  • Address (Personal or Business)
  • Date of Birth
  • Social Security Number or Tax Identification Number

We will also need the following as acceptable forms of identification:

  • Driver's License
  • State Issued Identification Card
  • Passport
  • Alien Identification Card

For purposes of the New Regulations, a “legal entity customer” is defined as a corporation, limited liability company, general partnership, and any other entity created by filing a public document with the secretary of state or similar office, such as a business or statutory trust, as well as a similar business entity formed in a foreign country. Legal entity customers do not include, for example, sole proprietorships, unincorporated associations, estate-planning trusts, or natural persons opening accounts on their own behalf. 

Section 326 of the USA PATRIOT Act requires that financial institutions identify and verify the identity of the beneficial owners of all legal entity customers at the time a new account is opened.  The identification and verification procedures for beneficial owners are very similar to those you currently follow as individual customers.

First City Bank may choose to implement this new rule prior to the required effective date.