Beneficial Ownership

Overview

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 a change to account ownership and/or control is completed.

In compliance with this new regulation, Home City Federal will collect beneficial ownership information from legal entity customers starting in the second quarter of 2018. This means that any time an account is opened or a change to account ownership and/or control is completed, 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 Home City Federal customer.

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 an account or changing an existing account ownership and/or control at any financial institution. This information is collected to help fight financial crime.
  • Legal entities will need to identify and attest to all ultimate beneficial owner(s) and agree to notify Home City Federal of any change to the information provided on the Beneficial Ownership form:
    • Beneficial Owners are those who own, directly or indirectly, 25% or more of the equity interests of the business. (May not apply to all legal entities) 
    • A Controlling Party who is an executive officer or senior manager (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, Treasurer); or any other individual who regularly performs similar functions.
  • Home City Federal 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.
    • Legal name, Social Security Number, Date of Birth, Address, Citizenship, Percent of Ownership, Copy of Government ID with current physical address.

Home City Federal appreciates your business and we are committed to providing you with extraordinary service for years to come.

For more information on beneficial ownership, please contact 937-390-0470.

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