Why do I have to provide information on the owners of my legal entity or organization?

The federal government has issued regulations requiring that before deposit, lending, or safe deposit accounts can be opened for organizations such as corporations, partnerships, and limited liability companies, information must be collected about the owners of those organizations.

What information do I have to provide?

If you want to open an account for a legal entity, you or someone else will have to sign a Certification that gives the following information:

• Names
• Home addresses
• Dates of birth
• Identifying numbers (such as Social Security Number)

For any owners that have 25% or more in ownership, as well as for one person who controls or manages the organization.

It may be necessary for you to get that information, put it on the form, and then bring the form along with copies of verifying documents (such as copies of the owners’ driver's licenses) back to the bank. An appropriate person will need to sign the Certification on behalf of your organization. Generally this will be the same person who certified the resolution (e.g. the secretary or other officer of a corporation, member or manager of an LLC, or partner of a partnership).

In order to make this process as efficient as possible, we suggest that you obtain the above, bulleted information for EACH identified individual. If your business will frequently be opening new accounts or loans, please keep this information current and available to present EACH time you come in to establish a new account.

What is a Beneficial Owner?

Each individual, if any, who owns, directly or indirectly, 25% or more of the equity interest of the legal entity.

What is a Controlling Person?

An individual with significant responsibility for managing the legal entity (an executive officer or senior manager e.g. Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer, or Secretary).

Can a person be both a Beneficial Owner and a Controlling Person?

Yes, in some cases the same individual might be both a beneficial owner and a controlling person. For example, you may have a person who is both the President of Acme, Inc. and owns 40% of the equity interest on the legal entity.

What does signing the Certification mean?

Do all businesses or organizations need to complete the Certification?

Generally most legal entities will be required to complete the Certification and provide information about beneficial owners, including a controlling person, before a deposit, lending, or safe deposit account can be opened. Examples of legal entities are corporations, limited liability companies (LLCs), partnerships, business trusts registered with the State Corporation Commission, or IOLTAs.

However, federal, state, and local governmental agencies and companies that are publicly traded on the NYSE, Amex, or NASDQ as well as sole proprietors and informal or unincorporated organizations such as bowling leagues are exempt from this rule. The Certifying Person may still be required to sign the Certification to attest to the exemption.

Some legal entities will not be required to complete the Beneficial Ownership section of the Certification because no one owns 25% of more of the equity interest on the legal entity. Generally these legal entities will have to complete the section identifying a Controlling Person. Examples of these legal entities are charities, non-profit corporations, or escrow accounts.

If you are not sure if your organization will be required to complete a Certification or the information and documents that you will need to present at account opening, please contact your local branch or Customer Service at 800-296-6246 or by email at customerservice@cffc.com .

What if no one owns 25% or more of the organization?

If there are no owners with 25% or more ownership, either because all of the owners own a smaller percentage or because it is a nonprofit organization that has no owners, then you will just need the information on one person who controls or manages the organization which should be entered in the Control part of the form right before the signature on the Certification.

It is important to note that the information that goes on the Certification must be information regarding people rather than another organization. If another organization is the owner, then the information on the people who own that other organization that is the owner must be provided.

Here are some examples of how this form should be completed in certain circumstances:

•  If there are four owners, each owning 25% then the information on all four owners should be entered in the Ownership section of the Certification, and information on one person in the control of the entity should be entered in the Control section.
• If there are two owners of 40% and one owner of the remaining 20%, then information on the two 40% owners should be entered in the Ownership section of the Certification, nothing needs to be entered for the 20% owner, and information on one person in control of the entity should be entered in the Control section.
• If there are five owners of 20% each, then no information needs to be listed on any of those owners in the Ownership section of the Certification, the box that says “If checked, Beneficial Owner listing requirement is Not Applicable” should be checked, and information on one person in control of the entity should be entered in the Control section.
• If your organization is a nonprofit entity, so it really does not have owners, then nothing needs to be entered in the Ownership section of the Certification, the box that says “If checked, Beneficial Owner listing requirement is Not Applicable” should be checked, and information on one person in control of the entity should be entered in the Control section.

Which depository institutions are required to collect this information?

Banks, savings associations and credit unions will all be covered by the regulations requiring Certifications for this type of information.

Does this just need to be done once?

No, it is required every time that another new deposit, lending, or safe deposit account is opened. It does not include an account opened for participating in an employee benefit plan established under ERISA.

When an existing business customer makes certain changes to an account, this is may be considered a “triggering event” and a new Certification must be provided to the bank in the same manner as a new customer. Examples of a triggering event are: change in authorized signers, change in resolution, and change in structure of legal entity (corporation becomes a partnership).

In order to make this process as efficient as possible, we suggest that you obtain the above, bulleted information for EACH identified individual. If your business will frequently be opening new accounts or loans, please keep this information current and available to present EACH time you come in to establish a new account.

What if one of the owners is from another country and doesn’t have a Social Security Number?

In that case, instead of entering anything in the Social Security column, just enter a passport number (or similar number) and the name of the country that issued the number in the last column labeled “For Foreign Persons”.

Does this information have to be kept confidential?

Yes, financial institutions are subject to privacy and information security requirements that cover this information.

How can I get a copy of the Certification of Beneficial Owners of Legal Entities form?

You can get a copy of the Certification form by clicking on the link below or by contacting Customer Service at 800-296-6246 or by email at customerservice@cffc.com .

Download the Beneficial Ownership Certification Form