The Beneficial Ownership Rule
What is the Beneficial Ownership Rule?
Under the Bank Secrecy Act (BSA), the Financial Crimes Enforcement Network (FinCEN) requires all covered financial institutions to collect and verify specific information about the beneficial owners of non-exempt legal entities at the time a new account is opened. This requirement, effective since May 11, 2018, is designed to help law enforcement combat money laundering, tax evasion, and other financial crimes.
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.
Definitions
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, Beneficial Owner(s) and Control Person address
- Date of birth of the Beneficial Owner(s) and Control Person
- Social Security Number of the Beneficial Owner(s) and Control Person
- Passport or driver’s license number for the Beneficial Owner(s) and Control Person, along with name of the issuing state or country, issuance date and expiration date
- Residency status
- Control Person’s position/title
- Beneficial Owner’s occupation
- Natural Authorized Person’s position at the business
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.
Be Proactive.
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).
Confirm Accuracy.
Allow time to complete the form. Confirm the required information in the form is correct with no spelling errors.
Communicate.
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 .
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