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#2252548 - 04/19/21 01:58 PM Beneficial Ownership - Shareholder
Jennifer Offline
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Jennifer
Joined: Dec 2014
Posts: 190
Are there any exemptions for collection beneficial ownership requirements for businesses who are shareholders of the bank only - no other accounts? I didn't see anything, but would appreciate a double check.

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#2252552 - 04/19/21 02:45 PM Re: Beneficial Ownership - Shareholder Jennifer
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,223
Galveston, TX
I am confused. What does being shareholder of the bank and beneficial ownership requirements have to do with each other?

(a) Account. For purposes of §1020.220:

(1) Account means a formal banking relationship established to provide or engage in services, dealings, or other financial transactions including a deposit account, a transaction or asset account, a credit account, or other extension of credit. Account also includes a relationship established to provide a safety deposit box or other safekeeping services, or cash management, custodian, and trust services.
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#2252557 - 04/19/21 02:52 PM Re: Beneficial Ownership - Shareholder Jennifer
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
You have to dig back to the definition of "account" in § 1020.100.

Quote
Account means a formal banking relationship established to provide or engage in services, dealings, or other financial transactions including a deposit account, a transaction or asset account, a credit account, or other extension of credit. Account also includes a relationship established to provide a safety deposit box or other safekeeping services, or cash management, custodian, and trust services.

A shareholder of the bank does not have a "formal banking relationship" with the bank. Partial ownership of the bank is not a banking relationship. Therefore, neither the bank's CIP requirement under § 1020.220 nor the Beneficial Ownership requirement under § 1010.230 will apply.
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