Frequently Asked Questions:
I’ve heard about the beneficial ownership regulation for businesses, what is it and why is it important?
The beneficial ownership regulation is a federal law that requires all financial institutions to identify and verify the identity of the beneficial owners of applicable legal entities (certain kinds of businesses) customers as well as a controlling person of the legal entity at the time an account or loan is opened or maintained. This regulation is effective as of May 11, 2018 and is intended to assist the government and law enforcement in the ongoing fight against money laundering and the financing of terrorism.
Why is Oritani Bank collecting this information?
As of May 11, 2018, all U.S. financial institutions are required to collect beneficial ownership information. The U.S. government implemented the new beneficial ownership regulation to help fight financial crimes. Oritani Bank is doing its part in upholding the new regulation’s requirements to help protect the U.S. financial system. Compliance with regulations has always been of the utmost importance to Oritani Bank, and the new beneficial ownership regulation is treated with the same high-level of importance.
Is Oritani Bank the only bank required to collect beneficial ownership information?
No, all U.S. financial institutions are required to comply with the new beneficial ownership regulation and will be collecting this beneficial ownership information from all applicable customers.
Who is a “beneficial owner?”
The federal government defines “beneficial ownership” as comprising two roles:
1.(Ownership): Any individual who directly or indirectly, owns 25% or more of a legal entity customer. For those persons who have an ownership interest in the legal entity, Oritani Bank is required to identify and collect personal information.
2.(Control): One individual with significant managerial control or influence over a legal entity customer who has “significant responsibility to control, manage or direct a legal entity customer” including an executive officer or senior manager, for example:
- Chief Executive Officer
- Chief Financial Officer
- Managing Member
- General Partner
- Vice President
- Or, any other individual who regularly performs similar functions.
For each legal entity customer subject to the beneficial ownership rule, the customer must identify one control person. It is possible that the control person may also be an ultimate beneficial owner.
What is a Legal Entity customer?
“Legal entity customers” include the following entities created by a filing with a state office or with a Secretary of State:
- Limited Liability Companies
- Limited Partnerships
- General Partnerships
- Business Trusts
- Any other entity created by a filing with a state office
The definition of a “legal entity customer” does not include:
- Natural persons
- Sole proprietorships
- Unincorporated associations, such as a neighborhood association
- Trusts, other than statutory trusts created by a filing with a state office
- Certain legal entities, including the following, are excluded from the Beneficial Ownership rule:
Federal or State regulated financial institutions (federally regulated banks, brokers or dealers in securities, mutual funds, futures commission merchants, and introducing brokers in commodities)
Bank and savings and loan holding companies
State-regulated insurance companies
Publicly held companies listed on the New York, American, or NASDAQ Stock Exchanges
Registered investment advisers and investment companies
SEC-registered exchanges or clearing agencies
Entities registered with the SEC
Will the beneficial ownership rule affect my existing accounts at Oritani Bank?
The new beneficial ownership rule should not affect existing accounts. However, information will be required for any Certificate of Deposit and Safe Deposit Box prior to renewal. Please be aware that an Oritani Bank representative may reach out for an updated Beneficial Ownership Certification in order 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 Oritani Bank? Do I still need to provide their personal information to Oritani 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. The required information includes name, home address, date of birth, social security number and valid identification (e.g., current driver’s license, etc.)
The Oritani Bank representative asked me to complete the Certification Regarding Beneficial Ownership form. What is this Form and why is it necessary?
The Certification Regarding Beneficial Ownership Form (the Form) is a legally required form that Oritani Bank 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 beneficial ownership data be stored?
Oritani Bank is required to maintain beneficial ownership data in its record system. Oritani Bank maintains very strict privacy policies and procedures and any client information, including beneficial ownership information will not be shared.
Will the information I provide for beneficial ownership be used for marketing to prospects that do not already have a relationship with Oritani Bank?
No, this information will not be used for marketing or prospecting purposes.
How do I get beneficial ownership information to my Oritani Bank representative?
Beneficial ownership information will be collected using Oritani Bank documents and should be returned to the Oritani Bank representative.
Given the sensitive nature of the information that is being provided for beneficial ownership, can the beneficial owner or control person provide the details directly to the Oritani Bank representative?
Yes, anyone who is more comfortable providing this information in person may contact the Oritani Bank representative, directly.
I also have personal accounts with Oritani Bank. Will Oritani Bank also collect beneficial ownership information for my personal accounts?
No, the beneficial ownership regulation only applies to applicable legal entity accounts.
What if I or my representative is unable to complete the Certification Regarding Beneficial Ownership Form when opening the account?
You will be able to start the process, but the account will not be opened until we have all of the required information. Please contact your local branch for additional information.
For more information on the Beneficial Ownership Regulation, please contact an Oritani Bank branch representative, Loan Officer or Business Development Officer.
Upload Certification Regarding Beneficial Ownership form here.