The U.S. government has implemented the new beneficial ownership regulation to help fight financial crimes. The beneficial ownership regulation requires all financial institutions to identify and verify the identities of the beneficial owners of the business as well as a controlling person of the business at the time an account is opened or maintained. This information is collected on a Certification of Beneficial Ownership form.
The purpose of these regulations is to assist law enforcement in financial investigations, help prevent the evasion of sanctions programs, improve the ability of financial institutions to assess risk, facilitate tax compliance, and advance U.S. compliance with international standards and commitments.
Who has to complete this form?
Starting in May 2018, each time a business account is opened or maintained, Rockland Trust is required to collect beneficial ownership information as well as identification documentation.
Who is considered a beneficial owner?
Beneficial owners are defined in two ways:
- The term “beneficial owner” shall mean each individual, if any, who owns, either directly or indirectly, 25% or more of the equity interests of a legal entity customer and,
- The term “control” shall apply to any single individual with significant responsibility to control, manage, or direct a legal entity customer. Such individual may include an executive officer or senior manager or any individual who regularly performs similar functions.
What information do I have to provide?
If you are opening an account on behalf of a business, you will be required to provide the following information on a Certification of Beneficial Ownership form:
- Address of primary residence
- Date of birth
- Social security number
- A copy of identification (e.g. driver’s license or passport)
The person opening the account on behalf of the business must sign the form attesting that the information provided is accurate to the best of their knowledge.
To learn more about beneficial ownership, view our: