Business FAQs

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The Financial Crimes Enforcement Network (FinCEN) issued the Ultimate Beneficial Ownership Rule to amend existing regulations in order to clarify and strengthen member due diligence requirements for financial institutions. The Rule outlines explicit member due diligence requirements and imposes a new requirement for financial institutions to identify and verify the identity of Ultimate Beneficial Owners of legal entity members.

Yes.

Any corporation, limited liability company, partnership, or other legal entity created by the filing of a public document with a Secretary of State or similar office.

The rule does not apply to sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf.

The rule defines Ultimate Beneficial Owners as follows:

• Each individual, if any, who, directly or indirectly, owns 25% or more of the equity interests of a legal entity; and
• A single individual with significant responsibility to control, manage, or direct a legal entity, including an executive officer or senior manager (e.g., chief executive officer, chief financial officer, chief operating officer, managing member, general partner, president, vice president, treasurer, or controller); or any other individual who regularly performs similar functions.

Yes. Financial institutions must collect the name, date of birth, address, social security number (or passport number or other similar information in the case of foreign persons), ownership percentage, and a government-issued photo ID for all Ultimate Beneficial Owners.

The rule does not apply to sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf.

An Ultimate Beneficial Ownership (UBO) Certification Form will be used to obtain the required information. The UBO Certification Form must be signed by a person acting on behalf of the legal entity certifying that the information provided is complete and accurate to the best of his or her knowledge.

In addition to collecting the UBO Certification Form, we will need to collect a legible copy of a government-issued photo ID for each Ultimate Beneficial Owner.

This information must be collected when opening a deposit account, loan, or certificate of deposit, each time a loan is renewed, and prior to the first time an existing certificate of deposit (opened before 05-11-2018) is renewed.

Generally, the rule does not apply to existing accounts that were opened before May 11, 2018 with the exception of renewals of loans and the first renewal of a certificate of deposit. We may also ask about Ultimate Beneficial Owners if there is activity on the account that may indicate there could have been a change in ownership.

Simply write in “not applicable” in that section of the UBO Certification Form. Please note, however, that we will still need to collect the information for a single individual with significant responsibility to control, manage, or direct a legal entity, including an executive officer or senior manager (e.g., chief executive officer, chief financial officer, chief operating officer, managing member, general partner, president, vice president, treasurer, or controller); or any other individual who regularly performs similar functions.

ABC, LLC. is owned 50% by Suzie Smith and 50% by XYZ, Inc. XYZ, Inc. is owned 50% by John Davis and 50% by Henry Brown. Both John and Henry indirectly own 25% of ABC, LLC. Suzie Smith (50% direct owner), John Davis (25% Indirect Owner) and Henry Brown (25% Indirect Owner) are all considered Ultimate Beneficial Owners of ABC, LLC, for the purposes of this new member due diligence rule and we will need to collect their names, DOBs, SSNs, street addresses, ownership percentage, and government-issued photo identification.

For more information, please visit your nearest SECU financial center.