Beneficial Ownership Certification – current ownership, or the soon-to-be ownership?

Question:

A legal entity currently owned by a husband and soon-to-be ex-wife wants a refinance loan for the husband to buy out the ex-wife’s interest in the legal entity.  Should the Beneficial Ownership Certification be completed according to the current ownership, or the soon-to-be ownership?  In other words, 50/50 ownership or 100% Husband?

Answer:  

The certification should reflect the current ownership structure – 50/50 ownership by the husband and soon-to-be ex-wife.  Then, when the husband opens new accounts under the legal entity after the buyout and/or you become aware of the change in beneficial ownership (i.e. a triggering event), you will obtain/update the beneficial owner information for the legal entity’s customer profile.

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Published
2019/11/13

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