As of May 11, 2018, all banks are subject to new rules under the USA PATRIOT Act to help support our government's fight against terrorism and other national security threats. All non-exempt business customers will be required to provide Security National Bank with certain information on its Beneficial Owners and/or an individual with Significant Managerial Control (i.e. Control Person).
What is the Certification of Beneficial Owners Form?
The Beneficial Ownership Certification Form, linked below, is a form Security National Bank is collecting from legal entity customers regarding their ultimate Beneficial Owners and Control Person. The individual completing the form is attesting that the information provided is accurate to the best of their knowledge. The form must be provided before a new account can be opened or a new service can be established.
CERTIFICATION OF BENEFICIAL OWNERS FORM
Who must complete the Certification Beneficial Owners Form?
This form must be completed and signed by the individual opening a new account on behalf of a legal entity. The information requested on this form is required to be collected by such U.S. financial institutions such as a bank or credit union, a broker or dealer in securities, a mutual fund, futures commission merchant, or an introducing broker in commodities.
For the purposes of this form, a legal entity includes:
- A corporation, limited liability company, or other entity 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.
“Legal entity” does not include sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf.
What information must I provide on the Certification of Beneficial Owners Form?
This form requires you to provide the following:
- Primary residence address
- Date of birth
- Social Security Number (as applicable)
For the following individuals:
- Beneficial Owner: Each individual, if any, who owns, directly or indirectly, 25 percent or more of the equity interests of the legal entity AND
- Control Person: An individual with significant responsibility for managing the legal entity customer (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer)
- If these individuals are not present at account opening, a photocopy of their driver's license or other acceptable form of identification must also be provided.
- The number of individuals satisfying this definition of beneficial owner may vary.
- Regardless of the number of individuals identified as beneficial owners, you must provide the identifying information of one individual identified as the Controlling Person.
- It is possible that in some circumstances the same individual might be identified as both Beneficial Owner and Control Person. For example, you may have the Chief Executive Officer of Widgets, Inc. who also holds a 30% equity interest.
We will also request to see an acceptable form of identification (e.g. Driver’s License, State-issued Identification Card, Passport) for each Beneficial Owner. Photocopies are acceptable. Other information may be requested as part of Security National Bank’s standard account opening processes.
What is a Beneficial Owner?
The U.S. government regulation defines “Beneficial Ownership” as being made up of two roles: 1) those who own an interest in a legal entity and 2) those who control the legal entity. Security National Bank is required to identify and collect personal information on anyone meeting the following criteria:
- EACH individual holding 25% or more Beneficial Ownership in the Legal Entity; and
- ONE individual with Significant Managerial Control of the Legal Entity.
What is a “Legal Entity”?
The rule defines a legal entity customer as a corporation, limited liability company, other entity created by filing of a public document with a Secretary of State or similar office, a general partnership, and any similar entity formed under the laws of a foreign jurisdiction that opens an account. The definition also includes limited partnership, business trusts created by filing with a state office, and any other entity created in this manner.
A legal entity customer does not include sole proprietorships, unincorporated associations, or natural persons opening accounts on their behalf.
Why must Security National Bank collect this information?
Per new federal regulation, all financial institutions in the U.S. will be required to collect beneficial ownership information. The goal of this regulation is to help support our government's fight against financial crime, terrorism, and other national security threats.
How will the change impact my existing accounts?
This data collection should not impact the operation of your existing accounts. However, please be aware your Security National Bank representative may reach out for Beneficial Ownership information to update your account file, ensuring necessary compliance for any future financial requests.
Do I still need to provide the personal information of Beneficial Owners or Control Persons who are not clients of SNB?
Yes. Regardless of customer status, information about the Beneficial Owners and Control Person must be collected in order to comply with the regulation.
Where will the Beneficial Ownership data be stored?
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 we have always maintained.
Will you need this information every time I open or renew an account?
We will need to ensure the information on your Certification of Beneficial Owners Form is accurate anytime a new account is opened or a change is made; however, we will not require verification (e.g. driver’s license) if the information has previously been obtained and is accurate.