Q. We have a publicly traded company that wants to open a checking account. I believe the company would be excluded from the beneficial ownership information, but would we still have to collect information for a controlling person?
A. If the customer is a publicly traded company, then they’re excluded from the definition of “legal entity customer” and you’re technically not required to collect either prong of beneficial ownership information from them. Since neither the ownership prong nor the control prong need be collected, the information on the control person would not be required by regulation. As always, it’s best to also check internal and/or investor policies as well, as these can have information collection requirements beyond those in the regulations.
“Legal entity customer does not include
…
(ii) A person described in § 1020.315(b)(2) through (5) of this chapter; “
31 CFR 1010.230(b)(2): https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1010/subpart-B/section-1010.230
Ҥ 1020.315 Transactions of exempt persons.
…
(b) Exempt person. For purposes of this section, an exempt person is:
…
(4) Any entity, other than a bank, whose common stock or analogous equity interests are listed on the New York Stock Exchange or the American Stock Exchange or whose common stock or analogous equity interests have been designated as a NASDAQ National Market Security listed on the NASDAQ Stock Market (except stock or interests listed under the separate “NASDAQ Capital Markets Companies” heading), provided that, for purposes of this paragraph (b)(4), a person that is a financial institution, other than a bank, is an exempt person only to the extent of its domestic operations;…”
31 CFR 1020.315(b): https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1020/subpart-C/section-1020.315#p-1020.315(b)
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