Pretty specific question here; I am being asked if UBO should be required as part of an Integrated Payables agreement for Cash Management.
According to FinCEN - it seems as though my answer should be yes?
For purposes of the CIP rule, an “account” is 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. An account includes a relationship established to provide a safety deposit box or other safekeeping services, or cash management, custodian, and trust services.
An account does not include: 8
• A product or service where a formal banking relationship is not established with a person, such as check-cashing, wire transfer, or sale of a check or money order;
• An account that the bank acquires through an acquisition, merger, purchase of assets, or assumption of liabilities; or
• An account opened for the purpose of participating in an employee benefit plan established under the Employee Retirement Income Security Act of 1974.
The CIP rule applies to a customer, 9 which means:
• A person that opens a new account; and
• An individual who opens a new account for:
o An individual who lacks legal capacity, such as a minor; or
o An entity that is not a legal person, such as a civic club.
A customer does not include a person who does not receive banking services, such as a person whose loan application is denied10 or a person that has an existing account with the bank, provided that the bank has a reasonable belief that it knows the true identity of the person.11 Also excluded from the definition of customer are financial institutions regulated by a federal functional regulator or a bank regulated by a state bank regulator, governmental entities, and publicly traded companies as described in 31 CFR 1020.315(b)(2) through (b)(4). 12