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Beneficial Ownership

In May 2018, a new federal regulation went into effect requiring 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.


FAQs

Why am I being asked for this information?

A Federal regulation went into effect in May 2018 and Virginia Credit Union, as well as other federally insured financial institutions, will be required to collect beneficial ownership information when new business accounts are opened.

Will this change my existing account?

No, this will not impact any existing business accounts with Virginia Credit Union, and no immediate action is necessary. However, if you open any future loan or deposit accounts for your business, you will be required to provide this information.

Who is a beneficial owner?

The beneficial owner(s) is 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). It’s possible that the same person may be identified as both an owner and the controlling person.

What if these individuals can’t be present when I open an account?

If these individuals can’t be present at account opening, you can bring a copy of their driver’s license or passport as well as their date of birth, address and social security number.

How will this information be collected?

When a business account is opened, a Certification Form will be filled out. This form will help us collect all the required information. The person opening the account will need to sign the form certifying that all the beneficial ownership information is correct.

What if the beneficial owners are not members of Virginia Credit Union?

This information will need to be collected whether or not the person identified is a member of Virginia Credit Union. Your business membership will not be affected. If the individuals identified do not have an existing relationship with us, their information will not be used for marketing or prospecting purposes.

Are any businesses exempt from this?

Yes. Some business members (Sole proprietorships, Unincorporated Associations and certain trusts) may be exempt from these requirements. However, the person opening the account may still be required to sign the certification form.

What will Virginia Credit Union do with this information?

The information we collect is securely stored and handled in accordance with our strict privacy policies. View our privacy policies.