Beneficial Ownership

Overview

In May 2016, the U.S. government passed a new regulation regarding the beneficial ownership of legal entity customers with a required compliance date of May 11, 2018. Going forward, it will be mandatory for all financial institutions to comply with this regulation by identifying the ultimate beneficial owner(s) and the individual with primary control of a legal entity customer opening or maintaining an account.

In compliance with this new regulation, Red River Bank will collect beneficial ownership information from legal entity customers starting on May 1, 2018. This means that any time an account is opened or maintained for a legal entity, 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 as a beneficial owner or a controlling individual is, or will be, a Red River Bank customer. This information will also be collected for existing legal entity customers who establish or maintain accounts once this new regulation is implemented at Red River Bank.

As always, we will treat all information collected with the same care we extend to all sensitive and personal information. 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 or maintaining accounts at any financial institution.
  • Legal entities will be required to identify and attest to all ultimate beneficial owner(s) that meet specific requirements as well as the control person (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer).
  • Red River Bank 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.

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