The Beneficial Ownership rule
This new rule is commonly known as the Beneficial Ownership rule.
A beneficial owner is:
- Each individual who owns 25% or more of the company.
- One individual who has significant managerial responsibility for the company.
Information you will need to provide
- Address (personal or business)
- Date of birth
- Social Security or Tax Identification Number
Acceptable forms of identification
- Driver’s License
- State-issued Identification Card
- Alien Identification Card
What types of accounts are impacted?
- Checking, savings and money market
- CDs (new or renewed)
- Safe Deposit boxes
What businesses are affected?
- Limited liability company (LLC)
- General partnerships
- Any other entity created by a filing of a public document with a Secretary of State or similar office
What businesses are generally or partially exempt from the requirements?
- Sole proprietorships
- Trusts and estates
- U.S. & state government entities
- Registered insurance companies
- Publicly-traded companies & subsidiaries
- Charities and non-profit entities
- Unincorporated associations such as scout troops or youth sport leagues
Why do we need this 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 information that identifies each person who opens a business-related account.
On January 1, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) began accepting beneficial ownership information reports.
Existing companies have until January 1, 2025, to file a beneficial ownership information report, while new companies must file within 90 days of creation/registration.
FinCEN is providing resources to help businesses discover what they need to report or if they are exempt from this requirement. To access the resources or to learn more about these reports, click here.
We’re here to help! If you have questions, please contact your local branch, commercial banker or the Customer Care Center at 1.888.725.2207.