Top 4 Things You Need to Know About Beneficial Ownership

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Read all about it! U.S. Government passes new regulation about Beneficial Ownership!

Wait … what?

You’re probably wondering why you’re reading an article about something called Beneficial Ownership, right? Or wondering why we’re writing an article about this topic?

Well, at Dime, we believe it’s essential to keep our ears to the ground to make sure you don’t miss any important information regarding your finances. And since it involves the government, and you, we thought you should know about it. You can always count on Dime to have your back.

So what is this Beneficial Ownership regulation?

Short answer? ¯\_(ツ)_/¯

Just kidding. We were wondering the same thing, so we did a little research. You don’t have to thank us.

Basically, all financial institutions are now required to follow a regulation that the beneficial owner and the control person of a legal entity must be identified. So with every new legal entity that’s created, we take the time to properly verify the beneficial owner and controller associated with that account.

To make it even clearer, a legal entity customer is defined as a “corporation, limited liability company, general partnership, and any other entity created by filing a public document with the secretary of state or similar office. They do not include sole proprietorships, unincorporated associations, estate-planning trusts, or natural persons opening accounts on their own behalf.”1

A beneficial owner includes “any individuals who, directly or indirectly, own 25% or more of the legal entity;” as well as “one individual who has ‘significant responsibility to control, manage, or direct the legal entity.”2 In other words, if you own a business all by yourself, then you’re a beneficial owner. If you and other each own at least 25% of your business, then you’re all beneficial owners. Pretty straightforward.

But not everyone will find the regulation applicable to their lives. If you only have a personal checking and savings account, you’re probably cool. But if you do, or you think you might, or you think you might one day, keep reading.

The regulation not only keeps you safe, but protects the American financial system. Really, it’s all in your best interest, and we like to think we know what we’re talking about. We have been in the financial biz for over 150 years.

Why is Beneficial Ownership being implemented?

Monetary crimes are on the rise, man. We see more and more every day. Whether it’s cyber warfare, or good ol’ fashioned money laundering, it’s a threat to everyone. The U.S. government implemented this regulation to protect you against these financial crimes.

We don’t know half the stuff the government deals with on a daily basis to keep our financial system in check. Making sure each accounted for a legal entity is properly identified is the least we can do to keep you — and your assets — safe.

So despite what your “enthusiastic” bathrobe-wearing neighbor thinks about the government, this time they’re really looking out for you.

What information will the Beneficial Owner need to provide?

We take this stuff pretty seriously, and we never ask for your personal information without a reason.

When we contact you, we’ll verify your name, address, and date of birth. If you’re worried about the security of your best-kept secrets, rest easy. We keep your personal information in the vault that is our system of record. Our team and technology watch your information like hawks.

Are there any other key points to remember?

You’ve read all the big details so far, but there are a few other things you should be aware of too. See keep these things in mind:

  1. All of your existing and future accounts will be affected by this. But not in any financial way. Remember, this is just about protecting you and your assets. Nothing’s gonna change except security. We like security. Security is good.
  2. es your control person or beneficial owner bank somewhere other than Dime? First off, why? Secondly, yes, we still need their information. Thirdly, seriously — why do they bank somewhere other than Dime?
  3. Your information is not for marketing purposes. Scout’s honor. Your details are safe with us.

And most importantly, Dime is here to help. Even when we’re buried under a large deposit from the latest Nor’easter, or while we’re trying not to melt on the sidewalk during a heatwave, we’ve got you covered. We’re your trusted advisors for everything you need.



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