Learn more about how the Beneficial Ownership Rule affects your business.

The Beneficial Ownership Rule

If you own or manage a business, this rule requires companies to disclose key information about individuals with significant control or ownership.

Federal regulation requires us to obtain, verify, and record information about beneficial owners of Legal Entity customers.

Beneficial Ownership is a new rule from the Financial Crimes Enforcement Network (FinCEN), under the Bank Secrecy Act, which requires all covered financial institutions to 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.

  • Effective May 11, 2018, new rules under the Bank Secrecy Act will aid the government in the fight against crimes to evade financial measures designed to combat terrorism and other national security threats.
     
  • Each time an account is opened for a covered Legal Entity, we are required to ask you for identifying information (name, address, date of birth, social security number) and identification documents (unexpired driver’s license, passport, etc.)

Questions? Contact a Banker 

Beneficial Owner Definitions

Beneficial Owner: Each individual with 25% or more equity interest in the legal entity, whether directly or indirectly.

Control Person: Single individual with significant responsibility to control, manage, or direct a legal entity customer (e.g. executive officer or senior manager).

Natural Authorized Persona (NAP): An individual authorized to open accounts or provide information on behalf of the legal entity.

Legal Entity:

  • Corporation
  • Limited liability company
  • Partnership
  • Other entity created by filing a public document with a Secretary of State or similar office.
  • General partnership
  • Any similar entity formed under the laws of a foreign jurisdiction that opens an account.

A Legal Entity Does Not Include:

  • Sole proprietorships or unincorporated associations.
  • Refer to the section on exclusions and exempt below for more details on whether your company is impacted by this requirement.

The Beneficial Owner Form

When opening an account at Northwest Bank, 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.

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USING THE FORM

  • You can review the form at any time to become familiar with it. 
  • To complete the Beneficial Ownership Form, please save it to your computer.  It can be completed as a PDF form but must then be printed as a hard copy; the Natural Authorized Person must sign in ink (“wet” signature). 
  • The completed and signed form may be scanned and returned to the bank as directed by a Northwest Bank representative or a paper copy may be brought to all new account openings. Northwest Bank will verify the information provided.