OH, HATED LAWYER, I FORMED A CORPORATION OR LIMITED LIABILITY COMPANY LIKE YOU SAID; SO WHY IS MY BANK GIVING US SO MUCH GRIEF ABOUT MY PERSONAL INFORMATION?

OH, HATED LAWYER, I FORMED A CORPORATION OR LIMITED LIABILITY COMPANY LIKE YOU SAID; SO WHY IS MY BANK GIVING US SO MUCH GRIEF ABOUT MY PERSONAL INFORMATION?

              There are many reasons that your financial institution seems to disregard your legal entity and seek personal information about you. 

Within the United States Treasury lies “FINCEN” (do not ask me if the “C” is a “k” or “s” sound). FINCEN stands for “Financial Crimes Enforcement Network.” Its published mission is “to safeguard the financial system from illicit use, combat money laundering, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.”

One tool in FINCEN’s arsenal is the Federal Regulation known as the “Beneficial Ownership Rule.”  Because our government believes that domestic and foreign “legal entities” (for our purposes, corporations, limited liability companies, trusts etc.), can be used to facilitate money laundering and other crimes, financial institutions are required to practice procedures that identify and verify actual owners of legal entities for the government’s anti-money laundering compliance programs.  

There are ownership percentages and control of the legal entity information that financial institutions must obtain from us.

This mandatory regulation covers almost every imaginable legal entity with wide sweeping tentacles.  

YES, your hated lawyer will still likely advise you to properly form and maintain your legal entity for as much liability protection possible and as for as much tax benefit as your accountant can arrange.  Yet, please understand that the “feds” do not care much about your liability shied efforts when it comes to its perceived responsibility “to safeguard the financial system from illicit use, combat money laundering, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.”  So, you must provide your financial institution your in-depth personal information.