Important information about opening a new business account
Effective May 11, 2018, all members who open new business accounts or apply for a new business loan for a legal entity will be required to provide information about each individual with beneficial ownership. This includes:
- Each individual who owns, either directly or indirectly, 25% or more of the company.
- One individual who has significant managerial responsibility for the company.
This requirement does not apply to sole proprietors or personal trust accounts.
For each beneficial owner, you will need to provide:
- Personal address
- Date of birth
- Social Security Number or Taxpayer Identification Number
- An acceptable form of identification (driver's license, state-issued identification card, passport, or alien identification card)
Why is this information required?
To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
Section 326 of the USA Patriot Act (Public Law 107-56) requires that financial institutions identify and verify the identity of the beneficial owners of all legal entity customers at the time a new account is opened. The identification and verification procedures for beneficial owners are very similar to those you currently follow as individual customers.