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Publications | March 19, 2018
2 minute read

Financial Institutions Set to Implement Additional Customer Information Requirements for Business Entities

A newly effective federal rule will require business entities to provide additional information when opening a new account at certain financial institutions. Beginning May 11, 2018, banks, broker-dealers, mutual funds, and futures commission merchants and introducing brokers will be required to implement additional customer information requirements. In order to comply with the requirements, financial institutions will require business entity customers, including corporations, limited liability companies, and partnerships, among others, to identify individuals who own and control the business entity. 

Specifically, business entity customers will be asked to identify the following: 

    Additionally, business entity customers will be asked to verify the identity of the identified persons, likely by providing certain documentation (e.g., unexpired government-issued photo identification). 

    The identification requirements will apply to new accounts opened by business entity customers on or after May 11, 2018, including existing customers opening new accounts. Business entity customers with existing accounts may also be asked to provide identification and verification information in order to allow the financial institution to update customer records.

    For questions concerning customer information requirements, please contact Rodney Martin, Ryan Richter or any member of the Warner Norcross + Judd Financial Services Group.