Recently, Federal regulation was expanded requiring ALL financial institutions to obtain and record information about the key individuals who own and control a legal entity (i.e., the beneficial owners). Financial institutions must comply with this regulation by identifying the beneficial owners and a controlling person of a legal entity customer opening or maintaining an account. The expanded regulation assists the government in the prevention of financial crimes including, tax evasion, fraud, and corruption.
To comply with the new Federal regulation, River City Bank will be required to collect beneficial ownership information from legal entity customers at the time of account opening or when you open a new account, supersede your signature card, renew your loan or add a new cash management service. Required information includes name, address, date of birth, identification number, and other information identifying beneficial owners and the controlling person.
We appreciate your patience and understanding as we request information to comply with the new regulation. As always, all personal information will be stored securely and handled with the utmost care.
Should you have any questions regarding beneficial ownership, please contact your Relationship Manager.
The federal law requires all financial institutions to identify and verify the beneficial owner(s) and controlling person of legal entity customers. The regulation assists the government in the prevention of financial crimes including, tax evasion, fraud, and corruption.
A beneficial owner is an individual who owns, directly or indirectly 25 percent or more of the equity interests of the legal entity customer.
A person with significant managerial control or influence over a legal entity customer (e.g., Chief Executive Officer, Chief Financial Officer, Managing Member, General Partner, etc.)
For every legal entity client subject to the new beneficial ownership rule, you must identify one control person.
NOTE: It is possible that the control person may also be an ultimate beneficial owner.
Legal Entity customers will be affected each time one of the following triggering events takes place:
Yes. Regardless of customer status, information about the beneficial owners and controlling person must be provided.
No. The Beneficial Ownership regulation only applies to legal entity accounts and not consumer accounts.