Beneficial Ownership


In May 2016, the U.S. government passed a new regulation regarding the beneficial ownership of legal entity customers.  Going forward, it will be mandatory for all financial institutions to comply with this regulation by identifying the ultimate beneficial owner(s) and a controlling person of a legal entity customer opening or maintaining of an account.

Beginning May 11, 2018, federal regulation requires all banks to obtain the name, physical address, date of birth, social security number, and a copy of an identifying document for each individual owning, either directly or indirectly, 25% or more of the equity interest in a legal entity customer, and the same information and documentation for an individual with authority to direct and control the legal entity.  The purpose is to increase transparency regarding the ownership of legal entities.  This information is not collected by the Secretary of State at the time of formation.

Federal regulation requires the bank to obtain this information each time the legal entity opens a new account (deposit, loan or safe deposit box), including the renewal of a loan or certificate of deposit (CD).  That means, we will need to obtain this information and documentation from you many times over the life of your relationship with Farmers State Bank.  We apologize for any inconvenience and sincerely appreciate your cooperation.

You will be asked to complete a form to collect the required information and certification of beneficial owners. 

Thank you for choosing Farmers State Bank to meet your financial needs.  We value your business and look forward to assisting you in the future.  If you have any questions, please call 217-285-5585 or stop by one of our locations to visit with a Personal Banker.

What you need to know about Beneficial Ownership


  • The new regulation impacts all legal entities opening or maintaining accounts at any financial institution.


  • Legal entities will need to identify and attest to all ultimate beneficial owner(s) that meet specific requirements as well as a controlling person (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President or Treasurer).


  • Farmers State Bank will collect information regarding the ultimate beneficial owner(s) and control person of legal entities whether or not they have a personal relationship with Farmers State Bank.  

Frequently Asked Questions: