Pub. 7 2017-2018 Issue 6

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S May • June 2018 17 What you’re actually going to be collecting on each individual is really similar to CIP information: name and title of the individual, name and address of the business, date of birth and Social Security Numbers for US citizens and Passport Numbers for non-citizens. two people – they indirectly own 50% of your legal entity customer and you would get the CIP-like information from each of them. Step 3: Who Do I Get the Ownership Information From? The beneficial ownership information – who the owners are, howmuch they own, who is in charge - is going to be given to you by the person opening the account. Does that mean a beneficial owner has to open the account? No - the person has been given the right to open the account by the company can give you this information. That means that the person opening the account may very well not be one of the 5 people you’re collecting the beneficial ownership information on. Step 4: What Do I Have to Collect? What you’re actually going to be collecting on each individual is really similar to CIP information: name and title of the individual, name and address of the business, date of birth and Social Security Numbers for US citizens and Passport Numbers for non-citizens. One big difference is, unlike CIP, you can accept copies of those documents as verification instead of the actual ID. So that means, the person opening the account can come prepared with that information. Step 5: How Do I Collect It? There’s also a model certification form in the appendix which you can take from your customers to identify those beneficial owner individuals. It’s basically going to allow the customer to just list their up-to-four beneficial owners and the single individual who is listed as controlling the company. You can use the model form but it’s not a require- ment – so if you want to take that information in some other fashion, you can do that. The person opening the account has to sign off on the information being correct regardless of how it’s collected. Step 5: When Do I Have to Collect? This information has to be collected every time a legal entity opens a new account – it’s not based on the legal entity being a new customer – it’s literally every time they open a new account, even if the entity has banked with the bank for 20 years. Additionally, after the rule came out, we started hearing panelists at regulator panels and different parties indicating that the beneficial ownership rules apply to renewals of CDs and loans. However, it’s also important to be aware the FDIC has also indicated that auto-renewals of CDs do not trigger Beneficial Ownership requirements. Since there have been conflicting opinions on this topic, it’s always best practice to get an interpretation directly from your own regulator. So there’s the rule – similar to CIP but requires more organization information from your business customers. Compliance Alliance does have a full BSA/AML compliance toolkit including Beneficial Ownership tools. n Silvia Garcia Maggio serves as an Associate General Counsel for Compliance Alliance. After graduating from The University of Tex- as School of Law in 2011, Silvia began her career in real property and foreclosure law. Employed by a national mortgage servicer since 2012, Silvia worked on the OCC independent foreclosure audit and in compliance for Enterprise Risk Management, gaining a multitude of experience dealing with multi-state and federal banking regulations. Silvia started with Compliance Alliance in March of 2014. Silvia is part of our team of attorneys who assist CA members with a wide-range of regulatory and compliance inquiries. Over the past year, Silvia has developed and implemented the C/A Minute videos, a series of short, compliance training and refresher videos that leverage the frequently asked questions from the Compliance Alliance hotline. In addition, Silvia regularly presents on a number of compliance topics at regulatory schools and conferences nation-wide .