Thread Options
#2220663 - 08/29/19 02:53 PM Beneficial Ownership Rule Question
Megaman Offline
100 Club
Joined: Jul 2017
Posts: 116
Good Morning Everyone,

Got a couple of questions related to Beneficial Ownership rule?

1) Is the Bank required to list the percentage of ownership on the Bank's system? (example: Joe Smith owns 33% of ABC company.) Also, if the Bank utilizes the Beneficial ownership certificates (from the Reg.) are you asking your customers to put the % on the certificate?

2) For the controlling prong, what are you using if the customer is an owner? We were told that we needed to be more specific than just owner. Any thoughts on this???

Thank you,

Return to Top
BSA/AML/CIP/OFAC Forum
#2220666 - 08/29/19 03:08 PM Re: Beneficial Ownership Rule Question Megaman
Sunshine Lady Offline
Platinum Poster
Sunshine Lady
Joined: Apr 2014
Posts: 620
1. The percentage is not required. We do not ask our customers to put percentages on the form.
2. Controlling prong can be the owner. Do not make it harder on yourself, whatever the customer tells, you then that is what you would list.
_________________________
Define Success on your own terms, achieve it by your own rules, and build a life you are proud of. Anne Sweeney

Return to Top
#2220671 - 08/29/19 03:15 PM Re: Beneficial Ownership Rule Question Megaman
Sunshine Lady Offline
Platinum Poster
Sunshine Lady
Joined: Apr 2014
Posts: 620
I found this under the FAQ's
Question 13: The control prong of the beneficial ownership requirement
Q: What types of individuals satisfy the definition of a person with “significant responsibility to control, manage, or direct a legal entity customer?”
A: Under the Rule, a legal entity must provide information on a control person with “significant responsibility to control, manage, or direct the company.” The rule also provides examples of the types of positions that could qualify, including “[a]n 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).” FinCEN’s expectation is that the control person identified must be a high-level official in the legal entity, who is responsible for how the organization is run, and who will have access to a range of information concerning the day-to-day operations of the company. The list of positions is illustrative, not exclusive.
_________________________
Define Success on your own terms, achieve it by your own rules, and build a life you are proud of. Anne Sweeney

Return to Top
#2220734 - 08/30/19 12:35 PM Re: Beneficial Ownership Rule Question Megaman
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,612
1) I agree that percentages are not necessary.
2) The control prong could be an owner, but needs to be someone with significant control like a CEO, President, or General Partner - as outlined in FAQ 13 above. Each owner who has control should have an official title, so have them list their title.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

Return to Top

Moderator:  Andy_Z