The rule defines the following as legal entity customers:
The following are not considered legal entity customers under the new rule:
A beneficial owner is any individual that has ownership and/or control of the legal entity customer.
Under the rule, an individual is considered a beneficial owner if she/he 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.
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).
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.
An account opener is an individual who opens an account for a legal entity customer.
Certification information includes:
The Customer Due Diligence Requirements for Financial Institutions Final Rule can be found here: https://www.gpo.gov/fdsys/pkg/FR-2016-05-11/pdf/2016-10567.pdf
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: