A Beneficial Owner is anyone who owns 25% or more of the business. The U.S. government requires financial institutions to obtain, verify and record identifying information about the beneficial owners of legal entities. SMCU must comply with this regulation by identifying the beneficial owner(s) – the individuals who own or control the entity doing business with us. This information must be collected, whether or not the individual is applying to be on the business account. The regulation defines a beneficial owner as:
- Each individual who owns 25% or more of the equity interest of the business, or
- Each individual with significant control of the business (CEO, CFO, General Partner, Treasurer, etc.)