Beneficial Ownership of Business Customers

Posted on

Dear Customer:

On May 11, 2018, the federal government is implementing new regulations in its fight against money laundering and terrorist financing that require financial institutions to gather beneficial ownership information on business customers. In other words, banks must identify the natural persons behind a legal entity. What do the new rules mean for you?

EACH time an account is opened or new services added for a business, we will be required to ask you for identifying inforamtion, including name, address, date of birth, Social Security number and a copy of a driver’s license or other unexpired ID for the individual(s) identified below:

  • EACH individual who has 25% or more beneficial ownership, directly or indirectly, in the business; and
  • ONE individual who has significant managerial control of the business.

The new regulations apply to all business accounts, including both deposits and loans. In many instances, this information will also be required if an account is renewed or modified, such as with the extension of a loan or change in authorized signers on a deposit account.

We recommend that you keep the referenced documentation current and available to present EACH time you come in to establish or modify an account or service.

We apologize for any inconvenience caused by these new rules and will do our best to minimize the impact. Pleas do not hesitate to contact us with any question or concerns you may have.

Sincerely,

Citizens Bank & Trust Company and Cochran Bank