The Beneficial Ownership Rule
What is the Beneficial Ownership Rule?
Beneficial Ownership is a requirement from the Financial Crimes Enforcement Network (FinCEN), under the Bank Secrecy Act, which mandates all covered financial institutions collect and verify from certain non-exempt legal entities specific information about the beneficial owners of the entity at the time a new account is opened. The intent of the Beneficial Ownership Rule is to assist authorities in counteracting money laundering, tax evasion, and other financial crimes. FinCEN requires all financial institutions to begin collecting the required information for new accounts opened no later than May 11, 2018.
Do you qualify as a beneficial owner of your company? Learn how this ruling affects your business and what information is needed for new and existing Fifth Third Bank accounts.
Which Entities are Excluded and Exempt?
The Beneficial Owner Form
When opening an account at Fifth Third Bank, National Assocation, the Beneficial Ownership Form must be completed by the NAP. The form requires, among other information, the name, business address or primary residence address, date of birth, Social Security Number (as applicable), the name of the issuing state or country, and number of the passport or driver’s license for the Beneficial Owners and Control Person as applicable.
The Form Requirements:
- Business name
- Business address or primary residence address
- Date of birth
- Social Security Number (as applicable)
- The name of the issuing state or country
- Passport or driver’s license number for the Beneficial Owners and Control Person as applicable
Beneficial Ownership information is Required:
- With each account opening, or
- If there were changes in beneficial ownership since last certifying for your organization, or
- As may be requested by Fifth Third.
- Recertification is required for each subsequent account opening*
*Note: Select fields in the form will be pre-populated and need to be confirmed. The remainder of the form will then need to be completed and signed by a Natural Authorized Person.
Using and Submitting the Form
- You can review the form at any time to become familiar with it.
- Save the Beneficial Ownership Form to your computer and fill in the fields.
- Print a hard copy and have the Natural Authorized Person sign in ink (“wet” signature).
- Scan and return the signed form to the bank as directed by a Fifth Third representative.
- If you’re opening a new account, you can bring a paper copy to your appointment.
- Fifth Third Bank will verify the information provided.
Beneficial Ownership Compliance
Here are some recommendations for seamless compliance with the Beneficial Ownership Rule.
Bringing a hard copy of the completed and signed form to your appointment will help speed up the process of opening a new account. For existing accounts, learn the threshold Fifth Third requires for beneficial owners (minimum of 25% equity interest).
Allow time to complete the form. Confirm the required information in the form is correct with no spelling errors.
Stay in communication with stakeholders of your organization to complete the form and submit it in a timely manner. Reach out to your Fifth Third banking representative if there is a change in beneficial ownership at your organization.
For More Information
For more information on this regulatory requirement and how it impacts you, please contact your Fifth Third banker or relationship manager, or refer to the Federal Register website or FinCEN’s FAQs Regarding Customer Due Diligence Requirements for Financial Institutions .
Employers have a duty to assess workplace safety hazards and reduce potential risks. Here's how you can identify and prepare your workplace and employees.
Insurance is an essential part of running a small business, and there are many factors to consider when choosing a business insurance plan. Learn more.
The Supreme Court’s recent ruling that states can begin collecting sales tax on all online purchases has the potential to curtail the competitive advantage that e-commerce businesses enjoy.