Beneficial Ownership Requirements
IMPORTANT INFORMATION ABOUT OPENING A BUSINESS ACCOUNT
To help the government fight financial crime, federal regulation requires certain financial institutions to obtain, verify, and record information about the beneficial owners of legal entity customers. Legal entities can be abused to disguise involvement in terrorist financing, money laundering, tax evasion, corruption, fraud, and other financial crimes. Requiring the disclosure of key individuals who ultimately own or control a legal entity (i.e. the beneficial owners) helps law enforcement investigate and prosecute these crimes.
Includes a corporation, limited liability company, or other entity that is created by a filing of a public document with a Secretary of State or similar office, a general partnership, and any similar business entity formed in the United States or a foreign country. Legal entity does not include sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf.
What information do you have to provide?
When you open a new account on behalf of a legal entity, Vantage Bank will ask for information about the legal entity’s beneficial owner(s), including:
- Date of birth and
- Social security number (or passport number or other similar information, in the case of Non-U.S. persons)
Vantage Bank may also ask for a copy of a driver’s license or other identifying document for each beneficial owner.
Beneficial owners are:
(1) Each individual, if any, who owns, directly or indirectly, 25% or more of the equity interests of the legal entity customer (e.g., each natural person that owns 25% or more of the shares of a corporation; AND
(2) An individual with significant responsibility for managing the legal entity customer (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer).
* Foreign Entity: We require to obtain beneficial ownership information for each individual who directly or indirectly owns 10% or more of the equity interest of the legal entity.
Please contact your Banker if you need help determining Beneficial Ownership.