Overview
In May 2016, the U.S. government passed a regulation regarding the beneficial ownership of legal entity customers. Going forward, it will be mandatory for all financial institutions to comply with this regulation by identifying the ultimate beneficial owner(s) and a controlling person of legal entity customer opening or maintaining an account.
In compliance with this new regulation, The Friendship State Bank will collect beneficial ownership information from legal entity customers on or near May 11, 2018. This means that any time an account is opened or maintained for a legal entity, we will request information that identifies the ultimate beneficial owner(s) and controlling person of the legal entity. The required identifying 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 is a Friendship State Bank client. This information will also be collected for existing legal entity customers who establish or maintain accounts once this new regulation is implemented at The Friendship State Bank on or near May 11, 2018.
While we understand the information requested is personal and sensitive, we need to obtain this information in order to comply with the law. As always, we will treat all information collected with the utmost care. All information will be stored securely and handled with the same standard of privacy that we have always maintained.
What you need to know about Beneficial Ownership
- The new regulation impacts all legal entities opening or maintaining accounts at any financial institution.
- Legal entities will need to identify and attest to all ultimate beneficial owner(s) that meet specific requirements as well as a controlling person (example: Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer).
- The Friendship State Bank will collect information regarding the ultimate beneficial owner(s) and controlling person of legal entities whether or not they have a personal relationship with the financial institution.
Beneficial Ownership Information Report Filing Dates
FinCen will begin accepting beneficial ownership information reports from reporting companies that are not exempt on January 1, 2024, the effective date of the reporting requirement.
Existing reporting companies
Created or registered to do business in the United States before January 1, 2024.
Reports due by January 1, 2025.
Updated Reports:
Required when there is a change to previously reported information about the reporting company itself or its beneficial owners.
Updated reports due within 30 calendar days after a change occurs.
Created or registered to do business in the United States on or after January 1, 2024
Reports due within 30 calendar days of receiving actual or public notice that the creation or registration of the reporting company is effective.
Corrected Reports:
Required when previously reported information was inaccurate when filed.
Corrected reports due within 30 calendar days after the reporting company becomes aware or has reason to know of an inaccuracy.
We appreciate your business and are committed to providing you with service you can Rely On for years to come.
Frequently Asked Questions: Click Here for FAQ
Beneficial Ownership Reporting: Click Here for Key Questions
For more information about beneficial ownership and reporting requirements: Visit the FINCEN website at https://fincen.gov/boi
What is the beneficial ownership regulation and why does it matter?
- The beneficial ownership regulation(Opens in a new Window) is a federal law requiring all financial institutions to identify and verify the identity of the beneficial owners of legal entity customers as well as a controlling person of the legal entity anytime an account is opened or maintained.
- The Regulation is aimed at making financial institutions safer for their customers and protecting the country's financial system.
Why has The Friendship State Bank been asked to collect this information?
- The Friendship State Bank, as well as all other financial institutions in the United States, will be required to collect beneficial ownership information. The U.S. government implemented the new beneficial ownership regulation to help fight financial crimes. The Friendship State Bank is doing its part in upholding the new regulation to protect the financial system.
- Compliance with regulations has always been of utmost importance to The Friendship State Bank, and the new beneficial ownership regulation will be treated with the same level of importance.
Is The Friendship State Bank the only bank that is required to collect beneficial ownership information?
- No. All financial institutions are required to comply with the new beneficial ownership regulation and will be collecting this beneficial ownership information from applicable customers.
What constitutes beneficial ownership?
- The U.S. government regulation defines "beneficial ownership" as being made up of two roles: (1) those that have an ownership interest in a legal entity and (2) those that control a legal entity.
- For those people who have an ownership interest in the legal entity, The Friendship State Bank is required to identify and collect personal information on anyone that meets or exceeds the following ownership thresholds:
- Ultimate Beneficial Owners
- A natural person having 25% or more of the equity interest of a a legal entity; or
- A natural person owning more than 10% if
- an individual, with any amount of ownership is a non-U.S. person (example: a non U.S. citizen who is not a lawful permanent resident); or
- the entity customer or intermediary entity is formed outside of the U.S.; or
- The entity client is A Private Investment Companies (PICS)/Personal Investment(PIVs)
- Control Person
- A person with significant managerial control or influence over a legal entity customer (example: Chief Executive Officer, Chief Financial Officer, Managing Member, General Partner, etc.)
- For every legal entity client subject to beneficial ownership, you must identify one control person.
- NOTE: It is possible that the control person may also be an ultimate beneficial owner.
- Ultimate Beneficial Owners
What if the people who have been identified as beneficial owners or control persons are not clients of The Friendship State Bank? Do they still need to provide their personal information?
- Yes. Regardless of customer status, information about the ultimate beneficial owners and control person must be provided in order to comply with the regulation.
What is a Certification of Beneficial Ownership. Why is it necessary?
The Certification of Beneficial Ownership is a legally required form we must collect from legal entity customers regarding their ultimate beneficial owners and the control person. By completing this form, you are attesting that the information provided is accurate to the best of your knowledge. Print Certification of Beneficial Ownership Form Here
Where will beneficial ownership data be stored?
- The Friendship State Bank will maintain beneficial ownership information in its system of record. We maintain strict privacy policies and procedures. Any customer information, including beneficial ownership, will not be shared.
Will the information I provide for beneficial ownership be used for marketing to prospects that do not already have a relationship with The Friendship State Bank?
- No. This information will not be used for marketing or prospecting purposes.
How do I get beneficial ownership information back to my Friendship State Bank representative?
- Beneficial ownership information will be collected using Friendship State Bank documents and should be returned to your Friendship State Bank representative.
Given the sensitive nature of the information that is being provided for beneficial ownership, can I provide the details directly to my Friendship State Bank representative?
- Yes. If you are more comfortable providing information in person, please reach out to your Friendship State Bank representative directly.
I also have personal accounts with The Friendship State Bank. Will Friendship also collect beneficial ownership information for my personal accounts?
- No. The Beneficial Ownership regulation only applies to applicable legal entity accounts.
Are non-governmental organizations (NGOs), charities and religious organizations such as churches required to complete the certification of beneficial ownership?
- NGOs, charities, and religious organizations such as churches are excluded from the beneficial ownership prong so you only need to list one person who has significant control of the entity for the control prong.
For more information on beneficial ownership, please contact a branch manager or loan officer near you.