Business

Customer Due Diligence

New Requirements for Establishing Accounts?

When you open a new deposit account or loan, or change authorized signers on an account, on or after May 11, 2018, you will be required to provide information about your beneficial owners.

A Beneficial Owner is:

  • Each individual who owns 25% or more of the company.
  • One individual who has significant managerial responsibility for the company.

Why Do We Need This Information?

To help the government fight the funding of terrorism and money laundering activities, Federal Law requires all financial institutions to obtain, verify and record certain business account information.

Section 326 of the USA PATRIOT ACT requires that financial institutions identify and verify the identity of the beneficial owners of all legal entity customers at the time a deposit or loan account is opened, or when authorized signers of the account are changed.

Types of Legal Entities that Require Additional Information:

  • Corporation
  • Limited Liability Corporation
  • Partnerships
  • Business Trust

Information Needed:

  • Personal Name
  • Personal Address
  • Date of Birth
  • Social Security or Tax ID Number

Acceptable Forms of Identification:

  • Driver's License
  • State-issued Identification Card
  • Passport
  • Military Identification Card

Additional information regarding the Customer Due Diligence Rule can be obtained from the United States Department of the Treasury, Financial Crimes Enforcement Network, FINCEN.

CDD Technical Amendment

FinCEN FAQs