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#2163008 - 02/02/18 08:51 PM BO Certification Form - ESIGN Compliant?
Paradise Offline
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Joined: May 2008
Posts: 68
In reading about the requirements to collect the new Beneficial Ownership Certification form it appears that we can obtain that information by paper or electronically.

If collecting the form electronically, do we have to comply with the ESIGN rules since it's a form signed by the individual opening the account on behalf of the legal entity?

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BSA/AML/CIP/OFAC Forum
#2163987 - 02/09/18 11:20 PM Re: BO Certification Form - ESIGN Compliant? Paradise
Elwood P. Dowd Offline
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Over 100 looks, but no responses, so I'll at least try to draw some attention to your issue. My very limited understanding is that e-sign is intended to give legitimacy to contracts executed electronically.

Appendix A simply isn't a contract and the regulation certainly does not indicate a "wet" signature is required.
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#2164074 - 02/12/18 04:57 PM Re: BO Certification Form - ESIGN Compliant? Paradise
John Burnett Offline
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The regulation doesn't even require you to use Appendix A at all. But you need to make certain the you obtain the information that appears on Appendix A, because it's not spelled out anywhere else in the regulation. You need to figure out how you'll get a certification without a piece of paper. You can do that without doing the "e-Sign handshake."
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#2165092 - 02/16/18 11:59 PM Re: BO Certification Form - ESIGN Compliant? Paradise
Richard Insley Online
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Richard Insley
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I have no more than a general understanding of the certification form and the rules governing collection and maintenance of the information, but that doesn't matter because your question relates to ESIGN, not the BSA/AML rules.

ESIGN "consent" (including the "handshake" John mentions) only becomes an issue when you want to use electronic documents and two conditions are present:
1. the customer is a consumer, and
2. a federal law, rule, or regulation (any one of them) requires you to deliver something to that consumer "in writing."

Since the this rule seems to be limited to receiving (not delivering) something from the customer, ESIGN's requirements are not triggered.

That's not to say that ESIGN can't apply...just that it doesn't require you to do anything. As Ken observes, ESIGN legitimizes electronic contracts and also electronic signatures. The Act simply pronounces e-contracts and e-signatures to be a legal option...you don't have to do a thing to receive this benefit.
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#2165097 - 02/17/18 12:56 AM Re: BO Certification Form - ESIGN Compliant? Richard Insley
Elwood P. Dowd Offline
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Elwood P. Dowd
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Thank you. I was hoping you would step in...
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#2171852 - 04/04/18 05:22 PM Re: BO Certification Form - ESIGN Compliant? Paradise
Paradise Offline
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Joined: May 2008
Posts: 68
Thanks guys! I have not been back on this site over the past month so just now reading. Your group discussion on this is very helpful and much appreciated.

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