Beneficial Ownership Certification – current ownership, or the soon-to-be ownership?
Question:
A legal entity currently owned by a husband and soon-to-be ex-wife wants a refinance loan for the husband to buy out the ex-wife’s interest in the legal entity. Should the Beneficial Ownership Certification be completed according to the current ownership, or the soon-to-be ownership? In other words, 50/50 ownership or 100% Husband?
Answer:
The certification should reflect the current ownership structure – 50/50 ownership by the husband and soon-to-be ex-wife. Then, when the husband opens new accounts under the legal entity after the buyout and/or you become aware of the change in beneficial ownership (i.e. a triggering event), you will obtain/update the beneficial owner information for the legal entity’s customer profile.
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Published
2019/11/13
Kevin Edwards
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).