Thread Options
#2255231 - 06/14/21 01:56 PM Beneficial Ownership Form Question
Curious in Kansas Offline
Junior Member
Joined: Oct 2015
Posts: 46
We have a business account that has three authorized signers on - John Doe, Steve Doe, and Bill Doe. The Beneficial Ownership form was completed with John Doe as the Controlling Person and all of John's information is listed. We have the current ID for John Doe. But Steve Doe signed the form. Couple of questions here:

(1) Is this allowed? Steve is an authorized signer.
(2) Do I need to ensure I have valid ID for Steve?

Thank you in advance for your help!

Return to Top
BSA/AML/CIP/OFAC Forum
#2255234 - 06/14/21 02:22 PM Re: Beneficial Ownership Form Question Curious in Kansas
ColoradoAML Offline
100 Club
Joined: Mar 2018
Posts: 233
1) There is no requirement that the person that signs the form is an owner or controlling person for the business; they're just certifying that it's accurate.

2) You do not need Steve's ID solely because he signed the form. Whether or not you need it based on him being a signer depends on your CIP.

Return to Top
#2255236 - 06/14/21 02:32 PM Re: Beneficial Ownership Form Question Curious in Kansas
Curious in Kansas Offline
Junior Member
Joined: Oct 2015
Posts: 46
1) OK, thank you.
2) We're FDIC regulated. We were told at our last FDIC exam in March 2020 that whomever signs the form/is the Controlling Person, we must have their current ID on file.

Return to Top
#2255245 - 06/14/21 03:49 PM Re: Beneficial Ownership Form Question Curious in Kansas
ColoradoAML Offline
100 Club
Joined: Mar 2018
Posts: 233
If they said that, they were mistaken. There's no requirement that the person that signs the form is a controlling person. All you need from the beneficial owners and control person is that someone provide their identifying information, not their signature.

Furthermore, there's no requirement that a certification of beneficial ownership be signed at all.

Return to Top
#2255248 - 06/14/21 04:01 PM Re: Beneficial Ownership Form Question Curious in Kansas
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,572
Originally Posted by Curious in Kansas
We were told at our last FDIC exam in March 2020 that whomever signs the form/is the Controlling Person, we must have their current ID on file.

The person opening the account doesn't even need to be a beneficial owner, and certainly doesn't need to be the controlling person. It could be, but it isn't required.
_________________________
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
#2255287 - 06/15/21 12:20 PM Re: Beneficial Ownership Form Question Curious in Kansas
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
" business account that has three authorized signers on - John Doe, Steve Doe, and Bill Doe. "

Why would you not have ID for one of the signers?

What does your board approved policy say?
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#2255299 - 06/15/21 01:50 PM Re: Beneficial Ownership Form Question Curious in Kansas
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,216
Galveston, TX
Because a signer on a business account is not an account owner and under the CIP rules there is no requirement to complete CIP on authorized signers, although many banks do under their board approved CIP program.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2255301 - 06/15/21 02:48 PM Re: Beneficial Ownership Form Question Curious in Kansas
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
While I agree from a "CIP requirement" it is not necessary but from a fraud perspective (and reputational risk)I would like to know who is signing on all accounts including a business account. Hence the reasoning for some board approved policy with this requirement in it.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#2255306 - 06/15/21 03:22 PM Re: Beneficial Ownership Form Question Curious in Kansas
John Burnett Online
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
Originally Posted by Curious in Kansas
1) OK, thank you.
2) We're FDIC regulated. We were told at our last FDIC exam in March 2020 that whomever signs the form/is the Controlling Person, we must have their current ID on file.

The "Control Person" is supposed to be at the corporate level. If you are opening an account for a local store owned and operated by a corporation in Kalamazoo, you should have someone from the headquarters listed as the Control Person. That person does not need to be a signer on the account and certainly does not have to be operationally involved in the local store. And he or she would almost certainly be opening the account or signing the BO certification form.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2255307 - 06/15/21 03:31 PM Re: Beneficial Ownership Form Question Curious in Kansas
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,714
You are here
I am hoping that when the Corporate transparency act of 2020 get hashed out we can get a process/regulation that makes sense and is somewhat verifiable. As of now the Control person does not need to be a signer or have ID at the institution unless your board approved policy says it needs to be there.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#2255310 - 06/15/21 03:39 PM Re: Beneficial Ownership Form Question Curious in Kansas
John Burnett Online
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
I would hope that the regulations under the Corporate Transparency Act will call for certification and updating to be a function handled by FinCEN and the entities, and banks' involvement will be verification of ownership against the FinCEN database.

"If wishes were horses, beggars would ride."
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z