Beginning May 11, 2018, new federal regulation under the Bank Secrecy Act will require all financial institutions to identify and verify the identity of the Beneficial Owners of certain business customers, subject to exclusions, each time a new account is opened. In order to comply, MVSB will collect this information from covered legal entities on a Beneficial Ownership Certification Form before an account is opened. The regulation also identifies account modifications, such as those for loans, as new accounts. We may also ask for a new certification when other events indicate a possible change in ownership.
For the purposes of this regulatory rule, a covered legal entity includes: a corporation, limited liability company, any other entity that is created by filing a public document with the Secretary of State or similar office, a general partnership, or any similar business entity formed in the United States or a foreign country. Legal entities excluded from this rule include: sole proprietorships, DBAs, unincorporated associations, personal trusts, or individuals opening accounts on their behalf.
Information collected on the Beneficial Ownership Certification Form will include the name, address, date of birth and social security number (or passport number or other similar information, in the case of foreign persons), and ownership percentage for the following individuals, the Beneficial Owners:
- Each individual that has 25 percent or more of the equity interest in the business; and
- One individual that has the authority to exercise control of the legal entity, such as a CEO, executive officer or treasurer.
We will also require identification from each Beneficial Owner and Control Person, such as a driver’s license or passport. Beneficial Owners are not required to appear in person and a photocopy or electronic reproduction of an identification will be accepted.
The form must be certified by the person opening the account. This person is required to provide his/her full name, title and date of birth on the form. Other information may be requested as part of the Bank’s standard account opening and maintenance processes.
Our goal is to make the business account opening process an efficient and enjoyable experience for you and we appreciate your cooperation as we work to satisfy these new requirements. If your business frequently opens accounts and/or loans, please be prepared to present this information each time you come in to establish a new account. A copy of the Beneficial Ownership Certification form can be obtained by visiting: mvsb.com/beneficial-owner or by contacting any of our branch offices at 800.922.6872.