CDD_Due_Diligence

IMPORTANT INFORMATION ABOUT OPENING A LEGAL ENTITY ACCOUNT
 

 

Effective May 11th, 2018, new rules under the Bank Secrecy Act will aid the government in the fight against crimes to evade financial measures designed to combat terrorism and other national security threats.

 

Each time an account is opened for a covered Legal Entity, we are required to ask you for identifying information (name, address, date of birth, social security number, as well as identification documents) for each individual that has beneficial ownership (25% or more) and one individual that has significant managerial control of the Legal Entity.

 

If you are opening an account on behalf of a Legal Entity, you will be required to provide the appropriate documentation and to certify that the information is true and accurate to the best of your knowledge.

 

We proudly support all efforts to protect and maintain the security of our customers and our country.

 

 

FAQs

 

 

Q: What is this new rule?
 

A: The Financial Crimes Enforcement Network (FinCEN) has issued a new Customer Due Diligence (CDD) Rule to amend existing regulations in order to clarify and strengthen customer due diligence requirements for financial institutions. The CDD Rule outlines explicit customer due diligence requirements and imposes a new requirement for financial institutions to identify and verify the identity of beneficial owners of legal entity customers, subject to certain exclusions and exemptions.

 

 

Q: Does the CDD Rule apply to all banks and credit unions?
 

A: Yes.

 

 

Q: What is a Legal Entity?
 

A: A Legal Entity is defined as a corporation, limited liability company or other entity created by the filing of a public document with the Secretary of State’s office (or similar office), as well as a general partnership and any similar entity formed under the laws of a foreign jurisdiction that opens an account. Also included are limited partnerships and business trusts created by a filing with a state office.

 

 

Q: I’m still not sure if this rule applies to me. Could you tell me more?
 

A: Certain entities are excluded from this new rule. Sole proprietorships, unincorporated associations, natural persons opening accounts on their own behalf, and certain trusts are exempt from this new rule. If you are still unsure if the CDD Rule applies to you, please stop by or call us at 417.882.8111 and speak with one of our friendly bankers.

 

 

Q: Who is a beneficial owner?
 

A: The Rule defines beneficial owner as each of the following:
 

  • each individual who, directly or indirectly, owns 25% or more of the equity interests of a legal entity; and

  • a single individual with significant responsibility to control, manage, or direct a legal entity, including an executive officer or senior manager (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer); or any other individual who regularly performs similar functions. This list of positions is illustrative, not exclusive, as there is significant diversity in how legal entities are structured.
     

 

Q: What information will be collected?
 

A: We are required to ask you for the name, address, date of birth, social security number, and identification documents for each individual that has beneficial ownership (25% or more) and one individual that has significant managerial control of the Legal Entity. As always, please remember that the information that we collect will be subject to our privacy policy, which can be found here.