New Regulations Governing Account Opening Requirements for Legal Entities
Beginning May 11, 2018, all financial institutions are required to obtain, verify, and record information about the beneficial owners and controllers of Legal Entity customers. Requiring the disclosure of beneficial owners (key individuals who own or control a Legal Entity) will help the government fight financial crime.
In support of this new regulation, each time a deposit or loan account, including credit cards, is opened for a covered Legal Entity, all financial institutions are now required to collect the following identifying information:
- Name
- Address
- Date of birth
- Social security number or similar identification number for foreign individuals
- Copies of corresponding ID (Driver’s License)
Regulations require that the information is collected for:
- Each individual that has beneficial ownership (25% or more); and
- An individual that has significant managerial control of the Legal Entity.
In order to provide you with the best account opening experience, it is critical that this information be presented or verified each time you open a new account. Washington Trust will maintain beneficial ownership information in our system of record. We maintain strict policies and procedures regarding the confidentiality and security of customer information, including beneficial ownership.
If you have questions about these new account opening requirements for Legal Entities, please contact your Washington Trust branch or call our Customer Solutions Center at 800-475-2265.