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What does the new Beneficial Ownership rule define as a legal entity customer?

The rule defines the following as legal entity customers:

• Corporations, including single owner S-corporations.
• Limited liability companies.
• Other entities that are created by the filing of a public document with a Secretary of State or similar office.
• General partnerships.
• Any similar entities formed under the laws of a foreign jurisdiction that open an account.
• Limited partnerships and business trusts that are created by a filing with a state office, or any other entity created in this manner as well as similar entities formed under the laws of other countries.

The following are not considered legal entity customers under the new rule:

• Sole proprietorships and most trusts.
• Unincorporated associations (small local community organizations such as Scout Troops and youth sports leagues.)
• Natural persons opening accounts on their own behalf.

What is a beneficial owner?

A beneficial owner is any individual that has ownership and/or control of the legal entity customer.

What is meant by the term “ownership?”

Under the rule, an individual is considered a beneficial owner if they directly or indirectly, through any contract, arrangement, or understanding, relationship or otherwise, has an individual equity interest of 25% or more of the legal entity customer.

What is meant by the term “control?”

Under the new rule, a “control” individual is a person with significant responsibility for managing the legal entity customer. This may include someone like an executive officer or senior manager (e.g. a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer.)

How will Interra gather my personal information if I am a beneficial owner?

Interra will provide the account opener with a beneficial ownership certification form that must be completed prior to account opening. The account opener attests to the accuracy of the information in the certification form.

What is an “account opener?”

An account opener is an individual who opens an account for a legal entity customer.

What information must be provided on the beneficial ownership certification form?

Certification information includes:

• Name (first, middle, last) and job title of the account opener.
• Name and address of the legal entity customer (street address, city, state/province, country and zip code.)
• The information below is required for beneficial owners:
  • Name.
  • Date of birth.
  • Physical address.
  • For U.S. Persons: Social Security Number.
  • For Non-U.S. Persons: Social Security Number, passport, alien ID, other government issued ID including document number and place of issuance.

Where can I learn more?

The Customer Due Diligence Requirements for Financial Institutions Final Rule can be found here. The Financial Crimes Enforcement Network (FinCEN) issued FAQs to assist in understanding the scope of the Customer Due Diligence Requirements for Financial Institutions which can be found here.

What is an acceptable Primary and Secondary ID?

For new individual or sole proprietorship accountholders/authorized signers, two pieces of identification are required prior to opening or becoming a signatory on any type of account. Of the two pieces of identification, one must be a primary form of documentation. For existing accountholders/authorized signers, one piece of primary identification is acceptable if you are amending or opening an additional account. Acceptable documents should be those that are properly registered or filed and approved with the appropriate agency. All documents must be unexpired in order to be considered acceptable.