We wanted to let you know about some changes coming to our account opening procedures for “legal entity customers” opening loan and deposit accounts with us. These changes are occurring because of new federal regulations for banks, credit unions, and other federally regulated financial companies that go into effect on May 11, 2018.
The new regulations require that we obtain information about the individual owners and managers of “legal entity customers”. A “legal entity customer” is a corporation, limited liability company, partnership, or trust. We are required to identify those individuals who own 25% or more of a legal entity customer, along with the individual who substantially controls or manages the legal entity customer. We are required to identify these individuals using information from a driver’s license or other form of acceptable identification, along with a social security number.
We don’t anticipate a significant impact on our customers because we already gather much of this information from our customers when opening business accounts. However, we wanted you to be aware that we may be required to ask you for some additional documentation before we open your account.
All banks and credit unions are required to ask for this information under the new regulations, and this change is occurring throughout our industry. If you have any questions, please contact one of our branch personnel or your account officer for more information.