New Federal Reporting Requirement for Beneficial Ownership Information (BOI)
As of January 1, 2024
Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, for example, the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. The new rule is called the Beneficial Ownership Information Reporting Rule.
Two timing requirements you should be aware of are:
This new regulation will require you to give information on your entity/business, your entity/business owners and control persons. Many entities/businesses will be excluded or exempt. You may learn more about this new regulation and see if you are exempt by going to https://fincen.gov/boi.
In May 2016, the U.S. government passed a new regulation regarding the beneficial ownership of legal entity customers. Going forward, it will be mandatory for all financial institutions to comply with this regulation by identifying the ultimate beneficial owner(s) and a controlling person of a legal entity customer opening or maintaining an account.
In compliance with this new regulation, Oostburg State Bank will collect beneficial ownership information from legal entity customers. This means that any time an account is opened or maintained for a legal entity, we will request information that identifies the ultimate beneficial owner(s) and controlling person of the legal entity. The required identifying information includes name, address, date of birth, identification number, and other information that will help identify those individuals. This information will need to be collected whether or not the person identified is a Oostburg State Bank customer. This information will also be collected for existing legal entity customers who establish or maintain accounts.
While we understand the information requested is personal and sensitive, we need to obtain this information in order to comply with the regulation. As always, we will treat all information collected with the utmost care. All information will be stored securely and handled with the same standard of privacy that we have always maintained.
What you need to know about Beneficial Ownership
- The new regulation impacts all legal entities opening or maintaining accounts at any financial institution.
- Legal entities will need to identify and attest to all ultimate beneficial owner(s) that meet specific requirements as well as a controlling person (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer).
- Oostburg State Bank will collect information regarding the ultimate beneficial owner(s) and control person of legal entities whether or not they have a personal relationship with the financial institution.