Beneficial Ownership Requirements Overview

Beginning May 11, 2018, all Financial Institutions are required to obtain, verify and record information about the beneficial owners and controllers of Legal Entity customers. Requiring the disclosure of beneficial owners (key individuals who own or control a Legal Entity) will help the government fight financial crime.

Each time a deposit or loan account is opened for a covered Legal Entity, all financial institutions are required to collect identifying information (name, address, date of birth, social security number), along with copies of corresponding ID (i.e. Driver’s License) for:

  • Each individual that has beneficial ownership (25% or more); and,
  • An individual that has significant managerial control of the Legal Entity.

In support of these regulatory efforts, The Bank of Hemet will implement these information gathering requirements. In order to provide you with the best account opening experience, it is critical that this information be presented each time you open a new deposit account or apply for credit.  

If you have questions about these new account opening requirements for Legal Entities, please contact your branch, relationship manager, or call Customer Service 8:30am–5:00pm Monday through Thursday or 8:30am- 6:00pm Fridays at 951-766-4100.

Beneficial Ownership | FAQ 


Q.  What types of Legal Entities are covered by this regulation?

A.  Legal Entity includes corporations, limited liability companies, limited liability partnerships, limited partnerships, general partnerships, similar entities formed under the laws of a foreign jurisdiction that open an account or other entities created by filing a public document with the Secretary of State. Legal Entity does not include sole proprietorships, unincorporated associations, trusts (with some exceptions), publicly traded companies, and most financial institutions, among others.


Q.  Who has to complete the Certification of Beneficial Owner(s) form?

A.  The person opening an account on behalf of a Legal Entity.


Q.  What information does the form require?

A.  Name, address, date of birth and Social Security Number (or passport number or other similar information, in the case of foreign persons), for the following beneficial owners:

  • Each individual, if any, who owns, directly or indirectly, 25% or more of the equity interests of a Legal Entity customer (e.g. each natural person who owns 25% or more of the shares of the corporation), and

  • An individual with significant responsibility for managing the Legal Entity customer (e.g. CEO, CFO, COO, Managing Member, General Partner, President, VP or Treasurer).

Q.  When must the form be completed?

A.  Prior to opening all new deposit and loan accounts for both new and existing Legal Entity customers.


Q.  Must The Bank of Hemet verify the accuracy of the information collected on each individual?

A.  Yes, The Bank of Hemet is required to verify name, address, date of birth and Social Security Number for all beneficial owners. We verify that information by obtaining ID, unless the individual is an existing customer and The Bank of Hemet already has ID on file.


Q.  Must Legal Entities notify The Bank of Hemet of changes in beneficial ownership?

A.  Yes, if there are changes to the beneficial ownership structure we must obtain a new beneficial ownership certification form. There may also be times when the Bank learns of beneficial ownership changes from sources other than the customer and will need the entity to complete a new beneficial ownership form. 


Q.  Who can assist customers with questions?

A.  Customers should contact the respective branch, relationship manager or contact customer service at 951-766-4100.