Effective May 11, 2016, the Financial Crimes Enforcement Network (FinCEN) issued new guidelines regarding the beneficial ownership of legal entity customers. It is now mandated all financial institutions comply with regulation by identifying the beneficial owner(s) and a controlling person of a legal entity customer opening or maintaining an account.
To adhere to new regulations, Capitol Federal® will need to obtain beneficial ownership information from legal entity customers. When opening new accounts we request you present information that identifies the primary beneficial owner and other controlling individuals on the account. The appropriate documentation includes name, address, date of birth, identification number, and other information that will help identify those individuals. This information is required for Capitol Federal customers and non-customers.
If you are opening an account on behalf of a legal entity, modifying signers on an existing account, renewing a Certificate of Deposit or adding a service to your account, you will be required to provide the appropriate documentation and to certify that this information is true and accurate to the best of your knowledge.
Please keep this information updated and available to present when you come in to open a new account or make changes to an existing account. If you have any questions please contact us, at 1-888-8CAPFED.
What You Need to Know
- 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 beneficial owners 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).
- We will collect information regarding the beneficial owner and control person of legal entities, whether or not they have a personal relationship with the financial institution.
What is this new regulation and why does it matter?
The beneficial ownership regulation is a federal law requiring all financial institutions to identify and verify the identity of the beneficial owners of legal entity customers as well as a controlling person of the legal entity anytime an account is opened or maintained. Its purpose is to make financial institutions safer and protecting the overall financial system against financial crimes.
Will other Banks require this same information?
Yes. All financial institutions are required to comply with the regulation and will be collecting the same information.
For more information from the US Department of Treasury about the Beneficial Ownership requirements, visit the FinCEN FAQ Guidance.
Notice to Business Customers: Register Beneficial Ownership Information
Under the Corporate Transparency Act of 2024, certain entities, including many small businesses, are required to take proactive measures to ensure compliance. This includes reporting detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who exercise significant control over the company or own at least 25% of its equity interests. This initiative aims to increase transparency, combat financial crimes, and protect the integrity of the financial system. FinCEN has provided this material as a reference guide for customers that may be required to report beneficial ownership.
For more information, visit the BOI homepage here.