Beneficial Ownership
Overview
In May 2016, the U.S. government passed a regulation regarding the beneficial ownership of legal entity customers. It is mandatory for all financial institutions to comply with this regulation by identifying the ultimate beneficial owner(s) and a controlling person of a legal entity customer opening or maintaining an account.
In compliance with this new regulation, Beacon Business Bank ("BBB") will collect beneficial ownership information from legal entity customers starting on April 16, 2018. This means that any time an account is opened or maintained for a legal entity, we will request information that identifies the ultimate beneficial owner(s) and controlling person of the legal entity.
What you need to know about Beneficial Ownership
New Beneficial Ownership Information (BOI) Reporting and How it Affects Your Business
As of January 1, 2024, certain businesses must comply with new Beneficial Ownership Information (BOI) reporting requirements as part of the Corporate Transparency Act of 2021.
As of January 1, 2024, certain businesses must comply with new Beneficial Ownership Information (BOI) reporting requirements as part of the Corporate Transparency Act of 2021.
Corporate Transparency Act of 2021
In 2021, Congress enacted the Corporate Transparency Act, intended to make it harder for bad actors to hide or benefit from ill-gotten gains through shell companies or other opaque ownership structures and to deter money laundering, terrorism, and other illegal activities. The new law requires certain companies (Reporting Companies) to report information about their Beneficial Owners to the Financial Enforcement Network (FinCEN).
What is a Reporting Company?
- Domestic entities: Corporation, Limited Liability Company (LLC), Limited Liability Partnership (LLP), certain Trusts, or any other entity created by the filing of a Secretary of State or any similar office under the law of a state or Indian tribe; or
- Foreign Corporation, LLC, LLP, or other entity registered to do business in any U.S. state or tribal jurisdiction.
Who is a Beneficial Owner?
- Anyone who exercises substantial control over a reporting company;
- Anyone who owns 25% or more of the equity interest of a reporting company or
- Anyone who receives substantial economic benefits from the assets of a reporting company.
The required information includes the Beneficial Owners:
- Full Legal Name
- Date of Birth
- Home Address
- Driver’s License Number or Passport (including an image of the document)
Reporting Deadlines
- Existing companies formed, incorporated, or registered BEFORE January 1, 2024, must complete the new Beneficial Ownership Information report by January 1, 2025.
- New companies formed, incorporated, or registered AFTER January 1, 2024, must complete the new Beneficial Ownership Information (BOI) within 30 days following confirmation of formation, incorporation, or registration from the Secretary of State or similar body.
Thereafter, reporting companies must update their Beneficial Ownership Information (BOI) reports (including changes to senior officers–i.e., President, CFO, General Counsel, CEO, COO) or correct any inaccurate filing within 30 days after any change or discovery of any inaccuracies.
How will this affect your Beacon Business Bank Account(s)?
There are no changes or effects on your accounts maintained at Beacon Business Bank. In compliance with the BOI regulation, Beacon Business Bank will continue to collect Beneficial Ownership Information from legal entity customers. This means that any time an account is opened or maintained for a legal entity, we will request information that identifies the ultimate beneficial owner(s) and the controlling person of the legal entity.
For more information on BOI Reporting can be found at: https://www.fincen.gov/boi
FinCEN’s Small Entity Compliance Guide (12.2 Molliebush@comcast.net) can be found at:
https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide_FINAL_Sept_508C.pdf (12.2 MB)