Effective May 11, 2018, the USA Patriot Act requires financial institutions to obtain, verify, and record information about the beneficial owners of legal entity customers before a new loan or account may be established.
These regulations were implemented to help the government fight financial crime. Legal entities can be used to disguise involvement in terrorist financing, money laundering, tax evasion, corruption, fraud, and other financial crimes. Requiring the disclosure of key individuals who own or control a legal entity helps law enforcement investigate and prosecute these crimes.
Starting on May 11, 2018, a certification form must be completed by the person opening a new account at a bank on behalf of a legal entity. If you are opening an account on behalf of a business, you will be required to provide appropriate documentation and to certify that the ownership information is accurate to the best of your knowledge.
With the changes in the law and our procedures, each time an account is opened or renewed, we are required to ask you for identifying information (name, address, date of birth, and social security number or tax identification number) for each of the following:
- Each individual who owns, directly or indirectly, 25% or more of the equity interests of the legal entity customer
- and -
- One individual with significant responsibility for managing the business (e.g. Chief Executive Officer, Chief Financial Officer, Partner, President, Vice President, or Treasurer.)
We will ask to see a copy of the driver’s license or other identifying document with a photo ID, such as a US Passport, for each beneficial owner and the individual with significant responsibility for managing the legal entity.
We are continually grateful that you have chosen to be a Bluestone Bank customer. Our goal is to help you understand the new rules and laws in place for financial institutions.