Beneficial Ownership for LLC

Person opened an LLC with his wife as signer only - is this still subject to the Control Prong/ownership prong

I'm not positive I understand the question, but it seems like you have an LLC that opened a new account. An LLC is an entity that requires verification of both the ownership and the control prong. The signers on the account have nothing to do with the ownership and control of the business/legal entity.

An LLC is a Legal Entity Customer as defined by the Final Rule.

Person that opened the account is the owner and wife is just a signer - so I guess he is the ownership prong and wife is control prong, he owns 100%

The Bank should not be deciding this. The final rule states that we ask the person opening the account on behalf of the legal entity who the beneficial owners are.

The person opening the account may state that the 100% owner satisfies both the ownership prong and the control prong.

I agree, Brian, the owner satisfies both the ownership prong and the control prong - thanks to all

Brian,

I cannot agree with you more. I keep reminding my staff that it is not them that decides who goes on the form. Give the form to the customer and have them complete it. If it seems wrong, then ask questions, but bank employees should not be preparing the form.