What is this form?
To help the government fight financial crime, federal regulation requires certain financial institutions to obtain, verify, and record information about the beneficial owners of legal entity customers. Legal entities can be abused to disguise involvement in terrorist financing, money laundering, tax evasion, corruption, fraud, and other financial crimes. Requiring the disclosure of key individuals who ultimately own or control a legal entity (i.e., the beneficial owners) helps law enforcement investigate and prosecute these crimes.
Who has to complete this form?
This form must be completed and signed by the person authorized to open a new account or otherwise act on behalf of a legal entity (the Certifying Person*) with any of the following U.S. financial institutions:
- a bank or credit union
- a broker or dealer in securities
- a mutual fund
- futures commission merchant
- an introducing broker in commodities
For the purposes of this form, a legal entity includes a corporation, limited liability company, or other entity that is 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 do I have to provide?
This form requires you to provide the name, primary residence address, date of birth and Social Security Number (as applicable) as well as the name of the issuer and number of the driver’s license or passport 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 customer (e.g., each natural person that owns 25 percent or more of the shares of a corporation) depending on bank instruction
Controlling 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 the presented driver’s license or passport or other identifying document for each beneficial owner must also be provided.
- The number of individuals that satisfy 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. For example, you may have the President of Acme, Inc. who also holds a 30% equity interest.
*The Certifying Person, by signing the form, will attest to the completeness and accuracy of the populated information. The Certifying Person will also be required to provide on the form his/her full name, title and date of birth, along with id. Other information may be requested as part of the bank’s standard account opening/maintenance processes.