New Regulations Governing Account Opening Requirements for Legal Entities
Beginning May 11, 2018, all Financial Institutions are required to obtain, verify and record information about the beneficial owners and controllers of Legal Entity customers. Requiring the disclosure of beneficial owners (key individuals who own or control a Legal Entity) will help the government fight financial crime. Each time an account is opened for a covered Legal Entity, all financial institutions are required to collect identifying information (name, address, date of birth, social security number), along with copies of corresponding ID (i.e. Driver's License) for:
Each individual that has beneficial ownership (25% or more); and,
An individual that has significant managerial control of the Legal Entity.
In support of these regulatory efforts, Texas Community Bank will implement these information gathering requirements April 30, 2018. In order to provide you with the best account opening experience, it is critical that this information be presented each time you open a new deposit account or apply for credit.
If you have questions about these new account opening requirements for Legal Entities, please contact your Texas Community Bank Branch or Relationship Manager at (956) 722-8333.
Frequently Asked Questions
What types of Legal Entities are covered by this regulation?
Legal Entity includes corporations, limited liability companies or other entities created by filing a public document with the Secretary of State, and partnerships. Legal Entity does not include sole proprietorships, unincorporated associations, trusts (with some exceptions), publicly traded companies, and most financial institutions, among others.
Who has to complete the Certification of Beneficial Owner(s) form?
The person opening an account on behalf of a Legal Entity.
What information does the form require?
Name, address, date of birth and Social Security Number (or passport number or other similar information, in the case of foreign persons), for the following beneficial owners:
Each individual, if any, who owns, directly or indirectly, 25% or more of the equity interests of a Legal Entity customer (e.g. each natural person who owns 25% or more of the shares of the corporation), and
An individual with significant responsibility for managing the Legal Entity customer (e.g. CEO, CFO, COO, Managing Member, General Partner, President, VP or Treasurer).
When must the form be completed?
Prior to opening all new deposit and loan accounts, including credit cards, for both new and existing Legal Entity customers.
Must Texas Community Bank verify the % of ownership on Legal Entities?
The Bank can rely on the Certification of Beneficial Owner(s) unless it has actual knowledge that any of the information is incorrect.
Must Texas Community Bank verify the accuracy of the information collected on each individual?
Yes, Texas Community Bank is required to verify identifying information for all beneficial owners. We verify that information by obtaining ID, unless the individual is an existing customer and Texas Community Bank already has ID on file.
Must Legal Entities notify Texas Community Bank of changes in beneficial ownership?
Typically this information is required only at the time of a new account opening, however the Bank may require updated information on existing accounts in certain instances.
Who can assist customers with questions?
Customers should contact the respective Texas Community Bank Branch or Relationship Manager.