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#2248982 - 02/10/21 02:21 PM Beneficial Ownership
Anonymous
Unregistered

We are undergoing an exam. We have a customer which signed a Cert of Bene Owners that there are no beneficial owners. The examiner located a chart of ownership in the loan file.

Our customer owns 90% in company A and a family trust owns 10% in company A. Company A (90%) owns 100% in Company B. Company B owns 100% in Company C. Company C is owned by individual Z (36%), indivdiual Y (24%), individual X (36%), individual W(2%) and individual V (2%).

The examiner is informing us that the Certification of Beneficial Ownership should list individuals Z and X as owners. I thought we could rely on what the information the customer provided on the signed certification?

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#2248984 - 02/10/21 02:30 PM Re: Beneficial Ownership Anonymous
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Only if you don't have other information that shows that it is not correct.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2248990 - 02/10/21 03:01 PM Re: Beneficial Ownership Anonymous
praBSA Offline
Gold Star
Joined: Aug 2018
Posts: 348
First..... Examiners are finally looking at Beneficial Ownership? I have yet to have it examined.....

Someone should have asked the customer to resolve the discrepancy.

When a customer opens an account here, typically a front-line employee will review the business docs, and very commonly the stated ownership of the company doesn't match the "operating agreement" if that was used to open the account. For example, my side business has 5 individuals on it's operating agreement, but at this point, all other owners have been bought out and two of us own it as 50/50. Our BO says 50/50 but it doesn't match our operating agreement. There are subsequent buyout agreements, but the bank doesn't need those documents to open an account and that might be all the bank has. In that situation, you are relying on the customer's signed certification that the BO is accurate but someone should at least be asking if they see it doesn't match.

Problem in your situation, I bet if you asked the customer, they would say that the chart is accurate, which means, those individuals should have been on the form.

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