Beneficial Ownership

Regulatory Requirements for Legal Entity Customers

Overview

In May 2016, the U.S. government passed a new regulation regarding the beneficial ownership of legal entity customers. Going forward, all financial institutions will be required 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.

To comply with this new regulation, Enterprise Bank will collect beneficial ownership information from legal entity customers starting May 8, 2018. This means that any time an account is opened or maintained for a legal entity, we will request information that identifies the 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 an Enterprise 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 Enterprise Bank on May 8, 2018.

While we understand the information requested is personal and sensitive, we need to obtain this information in order to comply with the law. 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.

New Beneficial Ownership Requirements Effective January 1, 2024

Beginning on January 1, 2024, many companies will have to begin reporting information about their beneficial owners, or those who ultimately own or control the company, and their applicants directly to the U.S. government under new requirements from the Financial Crime Enforcement Network (FinCEN). 

Existing reporting companies that were created or registered to do business in the United States before January 1, 2024 will be given until January 1, 2025 to report beneficial ownership information (BOI). New reporting companies created or registered to do business in the United States on or after January 1, 2024, and before January 1, 2025, must report BOI within 90 calendar days of receiving actual or public notice that the creation or registration of the reporting company is effective, whichever is earlier. Companies that are created or registered on or after January 1, 2025 must file BOI within 30 calendar days receiving actual or public notice that its creation or registration is effective.

Companies that are required to file a beneficial ownership information report must do so electronically through FinCEN’s filling system that will be available beginning on January 1, 2024.

FinCEN has not yet revised the rules and regulations mandating that financial institutions must collect beneficial ownership information during the deposit, loan and wealth account opening process. FinCEN anticipates updating these rules within the next 12-18 months. Until the rule changes, financial institutions are obligated to continue to collect this information.

More detailed information on the Beneficial Ownership requirement changes can be found at fincen.gov/boi(Opens in a new Window).

What you need to know about Beneficial Ownership

• The regulation impacts all legal entities opening or maintaining accounts at any financial institution. Click here for a list of exempt businesses.
• 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).
• Enterprise Bank will collect information regarding the beneficial owner(s) and control person of legal entities whether or not they have a personal relationship with the financial institution.

To help you prepare

To assist with the information gathering process, customers may complete and print the Beneficial Ownership Form. Please use this version of the form if you are a commercial loan customer. Please bring the completed form with you to a branch, along with a copy of each beneficial owner's identification. For privacy and security reasons, please do not email or mail the completed form.