Beneficial Ownership

New Federal Reporting Requirement for Beneficial Ownership Information (BOI)

As of January 1, 2024

Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, for example, the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. The new rule is called the Beneficial Ownership Information Reporting Rule.

Two timing requirements you should be aware of are:

This new regulation will require you to give information on your entity/business, your entity/business owners and control persons. Many entities/businesses will be excluded or exempt. You may learn more about this new regulation and see if you are exempt by going to https://fincen.gov/boi.

Overview

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

In compliance with this new regulation, Oostburg State Bank will collect beneficial ownership information from legal entity customers. 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 is a Oostburg State Bank customer. This information will also be collected for existing legal entity customers who establish or maintain accounts.

While we understand the information requested is personal and sensitive, we need to obtain this information in order to comply with the regulation. As always, we will treat all information collected with the utmost care. 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 need to identify and attest to all ultimate beneficial owner(s) that meet specific requirements as well as a controlling person (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer).
  • Oostburg State 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.

Oostburg Office
Phone: 920-564-2336
Fax: 920-564-3889

Cedar Grove Office
Phone: 920-668-6216
Fax: 920-668-8014

Telebanc:
920-564-OOST (6678)

Toll Free Telebanc:
1-888-299-OOST (6678)

Lost or Stolen Credit Card:
1-800-325-3678

Lost or Stolen ATM/Debit/HSA Card:
1-800-523-4175

Frequently Asked Questions

The beneficial ownership regulation is a federal law requiring all financial institutions to identify and verify the identity of the beneficial owners of legal entity customers as well as a controlling person of the legal entity anytime an account is opened or maintained. The regulation is aimed at making financial institutions safer for their customers and protecting the country’s financial system.

Oostburg State Bank and all other U.S financial institutions are required to collect beneficial ownership information. The U.S. government implemented the new beneficial ownership regulation to help fight financial crimes. Oostburg State Bank is doing its part in upholding the new regulation to protect the financial system. Compliance with regulations has always been of utmost importance to Oostburg State Bank, and the new beneficial ownership regulation will be treated with the same level of importance.

No. All financial institutions are required to comply with the new beneficial ownership regulation and will be collecting this beneficial ownership information from applicable customers.

The U.S. government regulation defines “beneficial ownership” as being made up of two roles: (1) those that have a 25% or more ownership interest in a legal entity, and (2) a person with significant managerial control or influence over a legal entity customer (e.g., CEO, CFO, COO, Managing Member, General Partner, etc.)

For every legal entity customer subject to beneficial ownership, you must identify one control person.

NOTE: It is possible that the control person may also be an ultimate beneficial owner.

Yes. Regardless of customer status, information about the ultimate beneficial owners and control person must be provided in order to comply with the regulation.

Oostburg State Bank will maintain beneficial ownership information in its system of record. We maintain strict privacy policies and procedures. Any client information, including beneficial ownership information, will not be shared.

No. The Beneficial Ownership regulation only applies to applicable legal entity accounts.

Please contact your Oostburg State Bank representative prior to the date of your CD’s maturity to add beneficial ownership information to your account. Additionally, if your beneficial information changes in the future, you will be required to notify Oostburg State Bank. If we do not receive this information by the renewal grace period, we will be required to close your CD account and send a check for the account balance to the address we have on file.

Additional Information

This document and link from FinCEN provides information on FAQs regarding Beneficial Ownership.

For more information about Beneficial Ownership, or anything else relating to your accounts, please contact us.