When you open a new deposit account, new loan, or new safe deposit box on or after May 7, 2018, you will be required to provide information on the owners (referred to as beneficial owners) of your business.
Why is there a new requirement to provide information regarding the owners of my business?
To help the government fight financial crime, Section 326 of the USA PATRIOT Act now requires all financial institutions to obtain, verify, and record information about beneficial owners of legal entity customers.
Are all financial institutions required to collect this information?
Yes, any of the following U.S. financial institutions are required to collect beneficial owner information for included legal entity accounts: a bank and credit union; a broker or dealer in securities; a mutual fund; a futures commission merchant; and an introducing broker in commodities.
Will all businesses be required to provide this information?
Most businesses (legal entities) will be required to provide this information prior to accounts being opened. An included legal entity is a corporation, a limited liability company, a partnership, or other entity that is created by the filing of a public document with a Secretary of State or similar office. Non-profits and charities are included legal entities but will only require identification of an individual with significant responsibility for managing the entity.
Some legal entities that are excluded from this new requirement are sole proprietorships; unincorporated associations or organizations; companies that are publically traded on the NYSE, Amex, or NASDAQ; and federal, state, and local governmental agencies.
If you are unsure if your business or organization will be required to provide this information prior to account opening, please contact your local branch or Essex Bank Customer Service at 1-800-443-5524.
Who are beneficial owners?
A beneficial owner is:
An individual can be both an owner and the controlling person. A control person does not have to be an owner.
What if no one owns 25% or more of the legal entity?
In the cases where no one person or other entity owns 25% or more of the legal entity all that will need to be provided is a control person to satisfy one beneficial owner.
What information will I have to provide on the beneficial owners of my legal entity?
All beneficial owners (including the control person) will need to provide their name, social security number, date of birth, physical street address, and a primary photo ID. An Essex Bank associate will also ask to see a copy of the primary photo ID for each beneficial owner.
What if one of the owners is from another country and does not have a SSN?
When a beneficial owner does not have a social security number because they are foreign individuals, we will accept a passport number (or similar number) and the name of the Country that issued the passport.
How will Essex Bank be collecting this information?
Prior to opening your new deposit account, new loan, or safe deposit box, an Essex Bank associate will ask you to complete a form called “The Certification Regarding Beneficial Owners of Legal Entity Customers”.
Where will I obtain the “Certification Regarding Beneficial Owners” form when I am ready to open an account?
This form will be provided to you by the Essex Bank associate you are working with to open your account. You may also obtain the form linked here on our website. If you have any questions about how to complete the form, please reach out to your local branch or Essex Bank Customer Service at 1-800-443-5524.
Who is authorized to complete and certify the Certification form?
The certification may be completed by any person with the authority to open an account on behalf of a legal entity. The individual certifying the form is signing to certify that the information provided on the form is complete and correct. They are also agreeing to notify Essex Bank of any change in such information.
Once Certification has been obtained, will I ever have to provide this information again?
Yes, Essex Bank associates may ask you during the course of business, while you are maintaining your business relationship with us, to verbally confirm that the “Certification Regarding Beneficial Owners” we have on file remains accurate. If changes have been made that will affect beneficial owners of your legal entity, we may ask you to complete and certify another form.
Will this information be kept confidential?
Yes, Essex Bank is subject to privacy and information security requirements that keep this sensitive information confidential.
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