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Beneficial Ownership Certification

Your business relationship is important to us. Our goal is to make the business account-opening process an efficient and enjoyable experience for you.

The U.S. government has amended customer due diligence rules to require financial institutions to collect and verify specific information from Legal Entities establishing relationships with Provident Bank. The new rules are referred to as beneficial ownership or beneficial ownership certification.

Why was this rule created?

These new rules will aid the government in the fight against crimes to evade financial measures designed to combat terrorism and other national security threats.

What does this mean for you?

Each time an account is opened for a covered Legal Entity, we will be required to ask you for identifying information (name, address, date of birth, social security number), as well as identification documentation for:

  • EACH individual that has 25% or more Beneficial Ownership in the Legal Entity; and,
  • ONE individual that has Significant Managerial Control of the Legal Entity.

If you are opening an account on behalf of a Legal Entity, you will be required to provide appropriate documentation and to certify that this information is true and accurate to the best of your knowledge.

In order to make this process as efficient as possible, we suggest that you obtain the above, bulleted information, along with a copy of a current identification (e.g. Driver’s License) for each identified individual.  If your business will frequently be opening new accounts/loans, please keep this information current and available to present each time you come in to establish a new account. If you have any questions please don’t hesitate to contact us.

Exceptions

Legal entities not impacted by the beneficial ownership requirement include, but are not limited to, sole proprietorships, unincorporated associations, or natural persons opening accounts on their own behalf.

Questions?

If you have any questions, please contact your lending officer or branch of account.

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