5/10/2018 | By Team United
Beginning in May 2018, new federal regulations will take effect for credit unions and other financial institutions that will have some impact on the information collected when you open a new account. The requirements are designed to better safeguard the financial system against illicit use, including terrorist financing, money laundering, and fraud.
So how will these new regulations change the way you bank? Below are some Frequently Asked Questions that should help you understand what to expect when opening a new account.
For Members who use their accounts for personal use:
How does the updated regulation affect me?
UFCU is required to understand the nature and expected use of the accounts being opened at the credit union. To meet this requirement, we will ask you questions about your anticipated account activity each time a new share savings account, checking account, share certificate, loan, or safe deposit box is opened.
What information on anticipated account activity will be collected?
We’ll ask Members to estimate their monthly transaction activity (transaction count and amount) for different types of transactions such as wire transfers, deposits and withdrawals.
For Members who use accounts for a business:
Why do I have to supply information on the beneficial owners of my organization?
The federal government issued new regulations requiring financial institutions to collect information about the beneficial owners of corporations, partnerships, limited liability companies and other organizations when share or loan accounts are opened for these organizations.
What information do I need to provide?
When opening a share account or loan, you will need to sign a certification form that provides the following information for each person who owns 25% or more equity interest in the organization, as well as for one person who controls or manages the organization (CEO, CFO, COO, etc.): name, address, date of birth, social security number or similar government-issued identification number.
You will also need to provide identity-verifying documents, such as copies of the beneficial owners' driver's licenses. The person signing the certification confirms that the information on the form is complete and correct to the best of his or her knowledge.
Does this just need to be done once?
No. Certification is required every time a new loan or share account is opened. Other events, such as changes in beneficial ownership or change in account signers, will also require certification.
A full list of FAQs can be found here.
If you have any additional questions regarding these new account requirements, please feel free to ask your United Federal Credit Union representative for more details. UFCU values both our Members’ privacy as well as the importance of complying with these new regulations. While you’ll be answering some additional questions during new account openings, we will make every effort to make the process as easy as possible for our Members.
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