New Business Account Opening Procedures
Beginning May 11, 2018, new federal regulations require all banks to ask business customers who are opening an account for the identifying information (name, address, date of birth, social security number) of the business’ “beneficial owners. The rule defines a beneficial owner as:
- Each individual that owns 25 percent or more of the company; and
- One individual that has the authority to exercise control of the business (such as a CEO, executive officer or treasurer)
This information is required under the Bank Secrecy Act and is intended to assist the government and law enforcement in the ongoing fight against money laundering and the financing of terrorism.