Why do I need to provide personal information for the business's controller and owner(s)?

In order to comply with Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations, you will be required to provide personal information on your business controller and beneficial owner(s). A controller is any natural individual who holds significant responsibilities to control, manage, or direct a company or other corporate entity (i.e. CEO, CFO, General Partner, President, etc). A company may have more than one controller, but only one controller’s information must be collected. A beneficial owner is any natural person who, directly or indirectly, owns 25% or more of the equity interests of the company.

Legal entities, whether domestic or foreign, can be used to facilitate money laundering and other crimes because their true ownership can be concealed. The collection of beneficial ownership information by banks about legal entity customers can provide law enforcement with key details about suspected criminals who use legal entity structures to conceal their illicit activity and assets. Requiring legal entity customers seeking access to banks to disclose identifying information, such as the name, date of birth, and Social Security Number of natural persons who own or control them will make such entities more transparent, and thus less attractive to criminals and those who assist them.

Learn more about the FFIEC BSA/AML Beneficial Ownership Requirements.