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New “Beneficial Ownership” Rule Requires Account Information

06/03/18

  07:48:00 pm, by MedBen5   , 270 words,  
Categories: News, Banking

New “Beneficial Ownership” Rule Requires Account Information

bank

Recently, the Financial Crimes Enforcement Network (FinCEN), a federal banking regulator, instituted a new federal rule which affects banks and other financial institutions. The “Beneficial Ownership” rule, which went in effect May 11, requires banks to collect and verify specific information about the beneficial owners and the control person of the entity opening a new account or modifying a current one at the time the account is opened or changed.

Beneficial owners are any individuals who directly or indirectly owns 25% or more of the legal entity, whereas a control person is an individual with significant responsibility to control, manage or direct the legal entity.If you need to open a new account or modify an existing account, the bank will require the beneficial owners’ and control person’s social security number, date of birth, and a photocopy of a government-issued ID.

The intent of the Beneficial Ownership rule is to assist authorities in counteracting money laundering, tax evasion, and other financial crimes. Because MedBen works with your plan bank accounts, we wanted you to be aware of this new rule, which affects all financial institutions in the country.

If your plan’s account is with Park National Bank, the MedBen Accounting Department can assist with questions you may have regarding Park’s implementation of these new rules.

If your plan account is with a bank other than Park National and you have not received information about how it will be implementing these requirements, MedBen recommends contacting the bank at your earliest convenience.

If you have any questions, please feel free to contact your Group Service Representative or MedBen Vice President of Finance Ed Nydegger at 740-522-7317.

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