Beneficial Ownership
Important Information About Opening a New Business Account
Notice – Effective January 1, 2025
On January 1, 2024, Beneficial Ownership Information reports must be filed electronically using FinCEN’s secure filing system. FinCEN will store Beneficial Ownership Information reports in a centralized database and only share this information with authorized users for purposes specified by law. The database will use rigorous information security methods and controls typically used in the Federal government to protect non-classified yet sensitive information systems at the highest security level.
When do I need to file a report?
• Reports will be accepted starting on January 1, 2024.
• Reporting companies created or registered to do business before January 1, 2024, will have additional time — until January 1, 2025 — to file their initial Beneficial Ownership Information reports.
• Reporting companies created or registered on or after January 1, 2024, and before January 1, 2025, have 90 calendar days after receiving actual or public notice that their company’s creation or registration is effective to file their initial Beneficial Ownership Information reports. Specifically, this 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
• Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial Beneficial Ownership Information reports.
Filing a Beneficial Ownership Information report is available through the FinCen website link below.
https://boiefiling.fincen.gov/boir/html
Overview
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
Beginning May 11, 2018, it will be mandatory for all financial institutions to comply with new regulations regarding legal entity accounts by identifying the ultimate beneficial owner(s) and a controlling person of a legal entity customer opening or changing an account. In compliance with this new regulation, the Bank of Salem will 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 controlling person of the legal entity. The required identifying information includes name, address, date of birth, identification number and other information that will help identify those individuals. This information will need to be collected whether or not the person identified is a Bank of Salem client.
While we understand the information requested is personal and sensitive, we need to obtain this information in order to comply with the law. As always, we will treat all information collected with the utmost care. All information will be stored securely and handled with the same standard of privacy that we have always maintained.
What You Need to Know about Beneficial Ownership
- A beneficial owner is each individual who owns 25% or more of the company or one individual who has significant managerial responsibility for the company.
- The new regulation impacts all legal entities opening or maintaining accounts at any financial institution.
- Legal entities will need to identify and attest to all ultimate beneficial owner(s) that meet specific requirements as well as a controlling person (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer).
- The Bank of Salem will collect information regarding the ultimate beneficial owner(s) and control person of legal entities whether or not they have a personal relationship with the financial institution.