Beginning May 2018, a new federal regulation will require financial institutions to obtain, verify and record information about the beneficial owners of legal entity customers.
All banks and credit unions must comply with this regulation by identifying the beneficial owner(s) – the individuals who own or control the entity doing business with us. This information will need to be collected, whether or not the person identified is a member of Virginia Credit Union.
The new ruling defines a beneficial owner as:
- Each individual who directly or indirectly owns 25% or more of the equity interests of a legal entity, AND
- A single individual with significant control of the legal entity customer (CEO, CFO, General Partner, Treasurer, etc)
The required identifying information includes name, address, date of birth, social security number, and other information that will help identify those individuals.
If you have a business relationship with us, no immediate action is necessary on your part and this change will not impact your existing business accounts. If you choose to open a loan or deposit account in the future, we will need to collect this information.
While we understand that the information requested through beneficial ownership is sensitive, it is required in order for us to comply with the law. All information collected by Virginia Credit Union is securely stored and handled with our strict privacy policies.
Learn more about this new federal requirement.
Beneficial Ownership FAQs
Documents needed to open a business account