Beneficial Ownership Certification for Legal Entities
Effective May 11, 2018, all financial institutions are subject to new rules under the Bank Secrecy Act that will aid the government in the fight against crimes to evade financial measures designed to combat terrorism and other national security threats.
Frequently Asked Questions
What additional information do I have to provide before an account/loan can be opened for a Legal Entity?
EACH time an account/loan is opened for a covered Legal Entity, we are required to ask you for identifying information for:
- EACH individual that has 25% or more Beneficial Ownership in the Legal Entity; and
- ONE individual that has Significant Managerial Control of the Legal Entity.
What is a Beneficial Ownership Certification Form?
This form will be completed at the time a new business account is opened for a legal entity. The form includes identity information about your organizations beneficial owners that have a 25% ownership interest, identity information about one individual with managerial control and a signature of the person providing and certifying this information. This form must be completed before or at account opening or loan closing.
Click here to access the Beneficial Ownership Certification Form which is fillable and may be downloaded and printed. This form cannot be digitally signed.
What is the definition of a "beneficial owner"?
A beneficial owner is defined as any individual who owns—either directly or indirectly—25 percent or more equity interest in a legal entity.
What is the definition of an "individual with significant management responsibility"?
This is a person with significant responsibility or control for managing the legal entity. For example, a chief executive officer, chief financial officer, chief operating officer, managing member, general partner, president, vice president, or treasurer. Generally, this is the individual who has the authority to act on behalf of your legal entity to make decisions related to financial relationships.
What personal information is required for each named individual on the certification?
For each person named on the certification, we are required to obtain their legal name, physical address, date of birth, and social security number (SSN). If they are not a U.S. citizen, then a passport number may be provided in lieu of the SSN. Additionally, we will need a copy of a government-issued ID, like a driver’s license or passport, for verification of each named individual.
Do we need to complete a certification if there are no individuals with 25 percent or more ownership?
Yes. You would simply mark the box indicating there are no individuals with beneficial ownership and only complete the section for the individual with significant management responsibility.
I am already an Ossian State Bank customer. Do I still need to provide this information?
The beneficial ownership information is required when a new account is opened, when there is a change of contract to an existing account, or a new or renewed loan is obtained. It may also be required if you request or conduct certain higher risk services.
Will I have to provide this information on a regular basis?
Once Ossian State Bank has obtained a beneficial ownership certification for your legal entity, you will be asked to confirm or re-certify the information when you open additional new accounts, change the contract of an existing account, or obtain a new or renewed loan.
What if my company is owned by another legal entity?
Indirect ownership means your legal entity may be owned by one or more legal entities. We are required to obtain information on the individual persons behind those layered entities who ultimately have the equivalent of 25 percent or more ownership of your legal entity.
Click here for an example to help determine individual beneficial ownership percentages for a legal entity that has indirect ownership of 25% or more of your entity.
What if my company is publicly traded?
There are a few exceptions to the collection of beneficial ownership information. It is not required to be collected for government agencies, publicly traded companies, sole proprietorships, or voluntary unincorporated associations (i.e., youth sports leagues or Scout troops).
Click here to see the exempt legal entity list from the regulation.
Who from my company should complete the certification?
The individual requesting the account be opened or the loan is the person that completes the certification. This could be the same individual named as the individual with significant management responsibility, or someone who has been designated by that individual to establish bank relationships on behalf of your legal entity. Either way, the person who completes the certification will sign it indicating the information is accurate to the best of his or her knowledge.
Does a beneficial owner of my company need to also be a signer on the account?
No. A beneficial owner can, but is not required to, be an authorized signer on the account.
Will you share this information outside of the bank?
Ossian State Bank will only use this information to comply with the Bank Secrecy Act. We treat this information with the same high level of confidentiality and security as we do all our customer information.