Beneficial Ownership

Effective May 11, 2018, a new regulation regarding the ultimate beneficial ownership of legal entity customers (passed by the Financial Crimes Enforcement Network [FinCEN]) is required to be implemented. On or after the effective date it will be mandatory for all financial institutions to comply with this regulation by identifying the ultimate beneficial owner(s) and a controlling person of a legal entity (business) customer opening a new account.

On the effective date, The Harvard State Bank will collect beneficial ownership information from legal entity customers. The required identifying information includes name, address, date of birth, identification number, and other information that will help identify those individuals.  This information will need to be collected so that The Harvard State Bank can comply with this new regulation.  Existing legal entity customers will not have to provide this information for their existing accounts, regardless if the person identified as a beneficial owner is a client of The Harvard State Bank.  It will be required if new accounts are opened after the implementation of this new regulation on or after May 11, 2018.

While we understand the information requested is personal and sensitive, we need to obtain this information in order to comply with the law. We always treat all information collected with the utmost care.  We securely store this non-public and confidential information with the standards of privacy required by law.

The new regulation affects all legal entity customers opening new accounts at any financial institution.

  • Legal entities (businesses) will need to identity and attest to all ultimate beneficial owner(s) that own >25% of ownership, as well as a controlling person (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer).
  • The Harvard State Bank will collect information regarding ultimate beneficial owner(s) and control person of legal entities whether or not they have a personal relationship with us.

We appreciate your business and are committed to providing excellent customer service from
“Your Friends in Banking.”

The beneficial ownership regulation is a federal law, enforced by FinCEN, requiring all financial institutions 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 on or after May 11, 2018. The regulation is aimed at making financial institutions safer for their customers and protecting the country’s financial system.

All financial institutions, including The Harvard State Bank, will be required to collect beneficial ownership information. The U.S. government implemented the new beneficial ownership regulation to help fight financial crimes, including money laundering.

No. All financial institutions are required to comply with the new beneficial ownership regulation and will be collecting this beneficial ownership information from applicable customers.

The U.S. government 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 who meet criteria #1 – who have an ownership interest in the legal entity – The Harvard State Bank is required to identify and collect personal information on anyone that meets or exceeds the following ownership thresholds:

Ultimate Beneficial Owners:

A natural person having 25% or more of the equity interests of a legal entity; or

A natural person owning more than 10% if:

  1. An individual, with any amount of ownership, is a non-U.S. person (e.g., a non-U.S. citizen who is not a lawful or permanent resident); or
  2. The entity customer or intermediary entity is formed outside of the U.S.; or
  3. The entity client is a Private Investment Companies (PICs) / Personal Investment Vehicles (PIVs).


Control Person:

A person with significant managerial control or influence over a legal entity customer (e.g., CEO – Chief Executive Officer, CFO – Chief Financial Officer, COO – Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer, etc.), OR

Any other individual who performs similar functions, including Non-Profit Corporations* or Charities, Escrow, Title Company Trust Account, Landlord/Tenant Escrow Account, Political Campaign Account, or IOLTAs, etc.

* Non-profit corporations that have filed its organizational documents with the appropriate State authority as necessary, such as:

  • National Public Radio
  • Girl/Boy Scouts of America
  • Churches-Temples-Synagogues
  • Chambers of Commerce
  • Art Institute of Chicago
  • Homeowner’s Associations, or
  • Service organizations (e.g., Rotary or other Recreation or Club accounts)

For every legal entity client subject to beneficial ownership, you must identity one control person.

NOTE: It is possible that the control person may also be an ultimate beneficial owner.

The change should not impact your existing accounts. However, please be aware that your Bank representative at The Harvard State Bank may reach out for beneficial ownership information to update your account file, ensuring necessary compliance for any future financial requests.

Yes. Regardless of customer status, information about the ultimate beneficial owners and control person must be provided in order to comply with the regulation, unless the customer is otherwise excluded.  Specific examples can be reviewed with your Bank representative at The Harvard State Bank

The Certification of Beneficial Ownership is a legally required document that The Harvard State Bank must collect from legal entity customers regarding their ultimate beneficial owners and the control person. By completing the document, you are attesting that the information provided is accurate to the best of your knowledge.

The Harvard State Bank will maintain beneficial ownership information in its system of record. We maintain strict privacy policies and procedures as required by other regulations.  Any client information, including beneficial ownership information, will not be shared.

No. We will not use this information for marketing or prospecting purposes.

Beneficial ownership information will be collected using Bank documents and should be returned to your representative at The Harvard State Bank.


Yes. If you are more comfortable providing this information in person, please reach out to your Bank representative directly.

If you cannot provide this information in person, the Bank can provide assistance with secure delivery through email or through a secure information portal (e.g., Leap File) to drop the confidential information into. Contact your Bank representative at The Harvard State Bank for details.

No. The Beneficial Ownership regulation only applies to applicable legal entity accounts.