Completing Beneficial Ownership Information

Beneficial ownership refers to the individuals who own and/or control (are responsible for) a business. Financial institutions are required to collect identifying information about beneficial owners. The method of collection and exact information that is collected varies slightly between financial institutions.  Click here for a general overview of Beneficial Ownership.

Your financial institution will set a threshold for collecting information on beneficial owners, this threshold is based on ownership percentage and can vary, generally 10% or more.

The application will prompt you to add beneficial ownership information for the owners of the business that is applying for products/services.  These may be persons (most common) or an entity.  

How to add Persons that are owners of the business.

#1.  In the Entity/Person name field, type in the name of the first person that is an owner of the business:

#2. Choose the Person from the Type drop down.

NOTE:  The Person Type should be used for any individual owners of the business.

#3. Enter the ownership percentage for this owner:

#4 Additional owners (Persons or Entities) can be added by clicking on the Add button up to 100%.

How to add Businesses that are owners of the business.

#1 In the Entity/Person name field, type in the name of the entity that is an owner of the business: 

#2. Choose the appropriate Entity type from Sole Prop to S-Corp, etc.

#3. Enter the ownership percentage for this owner:

#4 Additional owners (Persons or Entities) can be added by clicking on the Add button up to 100%.

NOTE: If an entity is listed as a Beneficial Owner, the application will follow up with requesting the Person owners of the owning entity.  

*** Beneficial ownership requires obtaining ownership down to the person level.

As owners are added, the ownership chart is updated and can be reviewed to ensure the appropriate information is being entered:

The next page in the application will prompt you to select a Controlling Individual and Authorized Signers, more information on these terms can be found here.

If you have any questions on what owners need to be included, or if you made a mistake when entering ownership information, please reach out to your financial institution representative with the contact information included in application. 

What if there is no person or entity that has ownership over the desired threshold?

If no one owns more than the set ownership threshold, no owners would need to be added and instead check the box confirming "..that no legal/entity person owns 10% or more."

EXAMPLE:

Green Cannabis Company LLC is owned 25% by John Smith and 50% by Smith Holding Company; therefore John was add as a Person and Smith Holding company as the appropriate entity type.

Once the Beneficial Owners are added, you can Continue with the application.

As Smith Holding Company was listed as an owner of Green Cannabis Company LLC at 50%, the application will follow up and prompt for the individuals owners of the business.

The ownership chart will now be updated with all applicable owners: