What you need to know about the new federal requirements regarding Beneficial Ownership.
In May 2016, the U.S. government issued a new rule regarding the beneficial ownership of legal entity customers effective May 11, 2018. All banks are required to identify the beneficial owners and the individual with primary control (controlling person) of a legal entity customer opening, establishing, or modifying a new or existing account, loan, or contracted bank product or service.
In order to meet these requirements, Citizens National Bank now collects more information from legal entity customers. Any time a new or existing account, loan, or contracted bank product or service is opened, established, or modified for a legal entity, we will request information about the beneficial owners and controlling person of the legal entity. The required information includes name, address, date of birth, identification number, and other information that will help identify those individuals. This information will need to be collected whether or not the person identified as a beneficial owner or a controlling individual is, or will be, a Citizens National Bank customer.
All information collected is securely stored and handled with the same privacy standards that Citizens National Bank has always maintained.
- The new regulation impacts all legal entities opening, establishing, or modifying a new or existing account, loan, or contracted bank product or service at any bank, credit union or financial institution.
- Legal entities are required to identify and attest to all beneficial owners that meet specific requirements, as well as the controlling person (e.g., CEO, CFO, President, General Manager, etc…).
- Citizens National Bank will collect information regarding the beneficial owners and controlling person of legal entities whether or not they have a relationship with the bank.