Beneficial Ownership Rule

Your business relationship is important to us.  Our goal is to make the business account opening process an efficient and enjoyable experience for you. 

Effective May 11, 2018, all banks are subject to new rules under the Bank Secrecy Act that will aid the government in the fight against terrorism and other national security threats. Section 326 of the USA PATRIOT Act requires that financial institutions identify and verify the identity of the beneficial owners of all legal entity customers at the time a new account is opened. The identification and verification procedures for beneficial owners are very similar to those you currently follow as individual customers.

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EACH time an account is opened for a covered Legal Entity, we will be required to ask you for identifying information (name, address, date of birth, social security number) as well as identification documentation for:

•             EACH individual that has 25% or more Beneficial Ownership in the Legal Entity; and,

•             ONE individual that has Significant Managerial Control of the Legal Entity.

If you are opening an account on behalf of a Legal Entity, we suggest that you obtain the above bulleted information, along with a copy of the current driver’s license and Tax ID for EACH identified individual.  If your business will frequently be opening new accounts/loans, please keep this information current and available to present EACH time you come in to establish a new account.

Covered Legal Entities include:

  • Corporations
  • Limited Liability Companies (LLCs)
  • Limited Partnerships (LPs)
  • General Partnerships
  • Business Trusts
  • Incorporated Charities*
  • Nonprofits*
  • Non-excluded Pooled Investment Vehicles*

*These entities are exempt from the Beneficial Ownership prong, but not from the Control Prong. The control prong is where we must identify a person who has significant managerial responsibility for the company.

Entities fully exempt from the rule include:

  • Natural Persons opening an account for personal use
  • Sole Proprietors
  • Unincorporated Associations
  • Trusts not formed via State Filing
  • Government Entities
  • Publicly Traded Entities
  • Companies registered with the Securities and Exchange Commission (SEC)
  • Bank Holding Companies

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If you have any questions, please don’t hesitate to contact us at clientsupport@mvbbanking.com or (844) MVB-BANK.  Your identifying information will also be required. More information can be found at the links below.