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Beneficial Ownership

Beginning January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. The change comes in how your company’s beneficial ownership information will need to be reported to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury.

Reporting requirements for beneficial ownership

As of May 11th, 2018, financial institutions are subject to new rules under the Bank Secrecy Act that will aid the government to help combat acts of terrorism and other national security threats.

New business accounts are required to provide identifying information (name, address, date of birth, social security number), as well as identification documents for each owner that maintains ownership interest of (25% or more of the business) as well as any designated owner or non-owners identified as having significant managerial control of the business.

We understand the sensitive the nature of the information being requested, however, to comply with the law, we MUST obtain this information. Neighbors FCU has a high standard in relation to safeguarding our members’ private information. We assure you that any information collected on your behalf will be secure and properly maintained with the utmost care.

Understanding Beneficial Ownership

The new rule applies to any formalized entity wishing to establish or maintain accounts at any financial institution. Business owners are required, under the new regulation, to identify and attest to all individuals considered beneficial owner(s) and choose a designated control person (e.g., Managing Member, Authorized Corporate Officer, Director or a General Partner etc.) of the business regardless if they may or may not currently be a member of Neighbors Federal Credit Union.

Getting Started

Remember we are here to help! In the event you would like to begin or if you have already received information from us to update your Beneficial Ownership Information and have questions please give us a call at 225-819-2178.

Upon completion, the form along with a copy of the driver’s license and a second form of ID may be brought to any one of our branch locations. Please DO NOT email this sensitive information directly to any employee of Neighbors Federal Credit Union.

FAQs

What is beneficial ownership and why is it important?

Beneficial Ownership is a regulation under federal law that requires all financial institutions to identify beneficial owners who own 25% or more in equity interest of the legal entity and the control person who has a significant responsibility in managing the entity. The purpose of the new regulation is to protect the overall financial system all financial institutions as well as our members.

Why must Neighbors Federal Credit Union collect this information?

It has been required for all financial institutions to collect information regarding beneficial ownership of all legal entities. The U.S. Government has implemented the new regulation of Beneficial Ownership to help fight against financial crimes. Neighbors Federal Credit Union must partake in upholding the new regulation in order to help the U.S. Government protect the financial system.

Is Neighbors Federal Credit Union the only Credit Union that is required to collect information regarding Beneficial Ownership?

No, it is mandatory that all financial institutions comply with this new regulation.

What information does a Legal Entity need to provide?

You may ask, “Who is the owner?” Beneficial Owners are deciphered in two ways:

  • Ownership: any individual(s) who (directly or indirectly) owns 25% or more of equity interest in the entity (the area should be left blank if no one is specified in owning 25% or more in the business)
  • Control Person: A single individual whose responsibility is to control, manage, or direct a business. If there are multiple individuals listed on the Beneficial Ownership form – at least one of them will be selected as a Control Person. (For example, Managing Member, President, Director, etc.)

Documentation Collected on the identified Beneficial Owner

At account opening for new accounts and/or anytime a beneficial owner of the legal entity changes, the Beneficial Ownership Information collected will be as follows:

  • Full Name
  • Date of Birth
  • Address (Business or Residential street address, no P.O. Boxes)
  • Social Security Number or ITIN
  • Percentage of Ownership
  • Title (Control Person)

The person opening the account on behalf of the legal entity will sign a certification form attesting that the information given on the beneficial ownership is complete and accurate.

Does this change affect my existing accounts?

This change in regulation does not affect your existing accounts; however, for any future changes or financial requests on the account after the compliance date of May 11, 2018, information regarding beneficial ownership must be disclosed at that time.

What are valid primary and secondary forms of identification acceptable to Neighbors FCU?

Primary Identification

  • Current State Issued Driver’s License; or
  • Current State Issued Identification Card; or
  • Active U.S. Military Identification Card; or
  • Current Passport; or
  • Active U.S. Government Identification

Secondary Identification

  • Social Security Card; or
  • Voter’s Registration Card; or
  • Birth Certificate; or
  • State or Local Government Identification; or
  • A Bank Issued Credit/Check Card; or
  • Employer-Issued Picture Identification; or
  • Auto or Medical Insurance Card bearing the customer’s name; or
  • Marriage License; or
  • State of Louisiana issued gun permit; or
  • Transportation Worker Identification Card (TWIC card);
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