To help the government fight financial crime, Federal regulation requires certain financial
institutions to obtain, verify, and record information about the beneficial owners of legal entity
customers. Legal entities can be abused to disguise involvement in terrorist financing, money
laundering, tax evasion, corruption, fraud, and other financial crimes. Requiring the disclosure of
key individuals who own or control a legal entity (i.e., the beneficial owners) helps law
enforcement investigate and prosecute these crimes.
This form must be completed by the person maintaining a business relationship or opening a new
account on behalf of a legal entity with any of the following U.S. financial institutions: (i) a bank
or credit union; (ii) a broker or dealer in securities; (iii) a mutual fund; (iv) a futures commission
merchant; or (v) an introducing broker in commodities.
For the purposes of this form, a legal entity includes a corporation, limited liability company, or
other entity that is created by a filing of a public document with a Secretary of State or similar
office, a general partnership, and any similar business entity formed in the United States or a
foreign country. Legal entity does not include sole proprietorships, unincorporated associations,
or natural persons opening accounts on their own behalf.
What information do I have to provide?
This form requires you to provide the name, address, date of birth and Social Security number
(or passport number or other similar information, in the case of foreign persons) for the
following individuals (i.e., the beneficial owners):
(i) Each individual, if any, who owns, directly or indirectly, 25 percent or more of the
equity interests of the legal entity customer (e.g., each natural person that owns 25
percent or more of the shares of a corporation); and
(ii) An individual with significant responsibility for managing the legal entity
customer (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating
Officer, Managing Member, General Partner, President, Vice President, or Treasurer).
The number of individuals that satisfy this definition of “beneficial owner” may vary. Under
section (i), depending on the factual circumstances, up to four individuals (but as few as zero)
may need to be identified. Regardless of the number of individuals identified under section (i),
you must provide the identifying information of one individual under section (ii). It is possible
that in some circumstances the same individual might be identified under both sections (e.g., the
President of Acme, Inc. who also holds a 30 percent equity interest). Thus, a completed form will
contain the identifying information of at least one individual (under section (ii)), and up to five
individuals (i.e., one individual under section (ii) and four 25 percent equity holders under
section (i)). The financial institution may also ask to see a copy of a driver’s license or other
identifying document for each beneficial owner listed on this form.