Reporting Beneficial Ownership to FinCEN

Business Member Resources

When you opened your business account with TowneBank, you were asked to provide several pieces of information to establish what is known as beneficial ownership. As your financial institution, we are required to obtain this information from business owners at account opening or whenever there is an ownership change; however, beginning in 2024, businesses will ALSO be required to submit documentation about beneficial ownership to the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of Treasury. 

What is Beneficial Ownership?

Beneficial ownership refers to the individuals who own or control a company. Information about beneficial ownership refers to providing identifying information about the individuals who directly or indirectly own or control a company. This is a U.S. regulatory requirement enforced by FinCEN, a bureau of the US Department of Treasury. 

Which businesses have to report to FinCEN?

Companies required to report are called reporting companies. Your company may be a reporting company if you are one of the following: 

  • A Corporation, a limited liability company (LLC), or a company otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
  • A foreign company that was registered to do business in any U.S. state or Indian tribe by such a filing. 

Who does not have to report?

There are twenty-three types of entities that are exempt from the beneficial ownership reporting requirements. We recommend you refer to this brochure provided by FinCEN and review each of them before deciding whether or not you need to report. 

If you have questions about how to report your company's ownership, we recommend visiting the FinCEN website.

More on FinCEN

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The information provided is not intended to be legal, tax, or financial advice or recommendations for any specific individual, business, or circumstance. TowneBank cannot guarantee that it is accurate, up to date, or appropriate for your situation. Financial calculators are provided for illustrative purposes only. You are encouraged to consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.

FinCEN FAQs

  • No, Beneficial Ownership is a requirement from FinCEN which is a bureau of the Department of Treasury. FinCEN's mission is to safeguard the financial system from illicit use and to combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence.
  • Depending on your business type you may need different types of identifying information. Additional documentation may be requested based on your company's organizational structure. Also, please have your company representative bring two (2) forms of identification (one with a photo). Accounts may only be opened by an authorized representative from your company, which includes company officers or the owner.

    Acceptable Photo Identification for company representatives
    • Unexpired driver's license
    • Unexpired passport
    • Unexpired military ID
    • Unexpired state-issued ID card
    Acceptable Non-Photo Identification for company representative:
    • Social security card
    • Voter registration card
    • Health insurance card
    • Birth certificate
    • Employment ID card
    • Pay stub
    • Automobile registration card
    • Unexpired work visa
  • The documents that you may need differ based on the type of business you are. For your convenience, we've provided a list below.
    Corporation
    Business owners opening an account must provide the following:
    • IRS Acknowledgement Letter for TIN
    • Corporate bylaws
    • For non-profits: IRS 501(c)(3) letter for non-profit organizations or tax exempt documentation
    Limited Liability Company (LLC)
    Business owners opening an account must provide the following:
    • IRS Acknowledgement Letter for the TIN
    • Operating Agreement
    Partnership
    Business owners opening an account must provide the following:
    • IRS Acknowledgement Letter for the TIN
    • Partnership Agreement
    • Fictitious Name Certificate / Certificate of Trade Name
    • A Certificate of Limited Partnership (if necessary)
    Sole Proprietorship
    Business owners opening an account must provide the following:
    • Social Security Card or the IRS Acknowledgement Letter for the TIN
    • Business License (VA Only)
    • Fictitious Name Certificate / Certificate of Assumed Name
    Club / Organization / Association
    Leaders opening an account must provide the following:
    • IRS Acknowledgement Letter for the TIN
    • Meeting minutes for the EIN / Statement of Organization form / Association Bylaws / Certification on letterhead signed by Secretary authorizing signatory for the Association
    • For Non-Profits: IRS 501(c)(3) letter for non-profit organizations or tax exempt documentation
  • Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. This is a federal law that all banks are required to follow.
  • Company representatives should bring two forms of identification and at least one should feature a photo.
    Acceptable Photo Identification for company representative
    • Unexpired driver's license
    • Unexpired passport
    • Unexpired military ID
    • Unexpired state issued ID card
    Acceptable Non-Photo Identification for company representative
    • Social Security Card
    • Voter Registration Card
    • Health Insurance Card
    • Birth Certificate
    • Employment ID Card
    • Pay Stub
    • Automobile registration card
    • Unexpired Work Visa

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