Certification of Beneficial Owners of Legal Entities
Overview
Effective May 11, 2018, Federal regulation under the Bank Secrecy Act requires all banks to obtain, verify, and record information about the beneficial owners of legal entity customers to aid the government in fighting financial crime. This regulation applies to new customers as well as existing customers.
Each time an account is opened for a covered Legal Entity, Synergy Bank representatives are required to ask for identifying information (name, address, date of birth, social security number as well as identification documents) for each individual that own, directly or indirectly, 25% or more of a legal entity and one individual that has significant control of the Legal Entity.
This information must be provided on Synergy Bank’s Certification of Beneficial Owners of Legal Entities form. You may be required to provide the appropriate documentation and to certify that the information on the form is true and accurate to the best of your knowledge. Failure to complete this form when requested may result in the exiting/closing of your Synergy Bank relationship.
Frequently Asked Questions
What is the Certification of Beneficial Owners of Legal Entities 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 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 by the person opening a new account on behalf of a legal entity with any of the following U.S. financial institutions: (i) a bank or credit union; (ii) a broker or dealer in securities; (iii) a mutual fund; (iv) a futures commission merchant; or (v) 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, address, date of birth and Social Security number (or passport number or other similar information, in the case of non-U.S persons) 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); and
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 driver's license or passport 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.
