We always want to make the account opening process easy and efficient for our business customers. With that in mind, we want to make you aware of some upcoming changes to our account opening process that are required by federal regulation.
Beginning on May 11, 2018, all banks and credit unions will be subject to new regulations under the Bank Secrecy Act intended to assist the government and law enforcement in the ongoing fight against money laundering and the financing of terrorism.
Frequently Asked Questions
What is the beneficial ownership regulation and why does it matter?
The beneficial ownership regulation is a federal law requiring all financial institutions, including Walden Savings Bank, 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.
Why has Walden Savings Bank been asked to collect this information?
Walden Savings Bank, as well as all other financial institutions in the United States, will now be required to collect beneficial ownership information. The U.S. government implemented the new beneficial ownership regulation to help fight financial crimes. Walden Savings 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 us, and the new beneficial ownership regulation will be treated with the same level of importance.
So all banks and credit unions are required to collect beneficial ownership information?
Yes. All financial institutions are required to comply with the new beneficial ownership regulation and will be collecting this beneficial ownership information from applicable customers.
What constitutes beneficial ownership?
This updated federal regulation defines “beneficial ownership” as being made up of two roles: (1) those that have an ownership interest in a legal entity and (2) those that control a legal entity.
For those people who have an ownership interest in the legal entity, Walden Savings Bank is required to identify and collect personal information on any individual having a 25 percent or more equity interest in the legal entity.
How will the change impact my existing accounts?
The change should not impact your existing accounts or those opened prior to May 11, 2018. However, please be aware that your Walden Savings Bank representative may reach out for beneficial ownership information to update your account file, ensuring necessary compliance for any future financial requests.
What if the people who have been identified as beneficial owners or control persons are not clients of Walden Savings Bank? Do I still need to provide their personal information to Walden Savings Bank?
Yes. Regardless of customer status, information about the ultimate beneficial owners and control person must be provided in order to comply with the regulation.
My Walden Savings Bank representative has asked me to complete a Certification of Beneficial Ownership. What is this and why is it necessary?
The Certification of Beneficial Ownership is a legally required form that we must collect from legal entity customers regarding their ultimate beneficial owners and the control person. By completing the form, you are attesting that the information provided is accurate to the best of your knowledge.
Will the information I provide for beneficial ownership be used for marketing to prospects that do not already have a relationship with WSB?
No. This information will not be used for marketing or prospecting purposes.
I also have personal accounts with Walden Savings Bank. Will you also collect beneficial ownership information for my personal accounts?
No. The Beneficial Ownership regulation only applies to applicable legal entity accounts.
What if I have additional questions?
We're here to help! Please Contact Us and we will answer any additional questions you may have.