Important Federal Regulation Update
For Business Owners

Beginning May 11, 2018, federal regulations will require all covered financial institutions, including banks, to obtain, verify, update and retain information regarding the beneficial owners of legal entity customers.

 

 

What you need to know about these new beneficial ownership requirements?

What is a legal entity?

A legal entity customer generally includes corporations, limited liability companies and general partnerships as well as other entities created by the filing of a public filing with a secretary of state or similar office.

What is a beneficial owner?

Beneficial owners include any individual who owns, directly or indirectly, 25% or more of the equity interests of a legal entity and one individual with significant management responsibility over the legal entity (e.g.  chief executive officer, chief financial officer, chief operating officer, managing member, partner or president).

How will the account opening process change for legal entity customers?

At the time of opening an applicable account with Penn Community Bank the collection of beneficial owner information including legal name, physical address, date of birth, social security number and unexpired government issued id will be required. Beneficial owners are not required to be present at the time of account opening. In their absence copies of identifying information can be provided by the individual opening the account on behalf of the legal entity.

 


Need more assistance?

At Penn Community Bank, we are dedicated to keeping our customers informed regarding regulatory changes that may impact you.