Regulation of Beneficial Ownership
At Uwharrie Bank we strive to make each visit you make an efficient and enjoyable experience. In that light, we want to make you aware of a new Regulation that all financial institutions will be required to comply with by May 11, 2018 called the “Beneficial Ownership” Regulation.
As part of the Bank Secrecy Act, which aids in the fight against financial crimes, each time an account is opened for a “covered Legal Entity” or a “triggering event” with an account occurs, all banks will be required to ask for identifying information (name, address, date of birth, social security number), for the individual authorized to transact business on the account, as well as:
EACH individual who directly or indirectly owns 25% or more of the Legal Entity (OWNERS) and,
ONE individual who has significant Managerial Control of the Legal Entity (CONTROL)
If you are the individual authorized to transact business on behalf of a Legal Entity, you will be required to certify that the information is true and accurate to the best of your knowledge with a triggering event.
In order to make the account-opening process as efficient as possible, we suggest you obtain the information for any OWNER (with 25% or greater ownership) and CONTROL individual above along with a copy of the current driver’s license for EACH identified individual. This is required every time your business opens an account.
A Few Examples Of A Triggering Event Are:
Opening a new Deposit, Loan or Investment account
Ownership or Managerial Control changes at the Legal Entity
Corporate structure changes (ie, from LLC to incorporated) at the Legal Entity
A “Legal Entity” Includes:
Limited liability companies (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.
A Legal Entity Does Not Include:
Natural persons opening accounts on their own behalf
Learn more about: Regulation of Beneficial Ownership