The U.S. government regulation defines "beneficial ownership" as being made up of two roles: (1) those that have an ownership interest in the legal entity and (2) those that control a legal entity.
For those people who have an ownership interest in the legal entity, Farmers State Bank is required to identify and collect personal information on anyone that meets or exceeds the following ownership thresholds:
Ultimate Beneficial Owners
A natural person having 25 percent or more of the equity interests of a legal entity; or
A natural person owning more than 10 percent if:
a. An individual, with any amount of ownership, is a non-U.S. person (i.e.-a non-U.S. citizen who is not a lawful permanent resident); or
b. The entity customer or intermediary entity is formed outside of the U.S.; or
c. The entity client is a Private Investment Companies (PICs) / Personal Investment Vehicles (PIVs)
A person with significant managerial control or influence over a legal entity customer (e.g.- Chief Executive Officer, Chief Financial Officer, Managing Member, General Partner, etc.)
For every legal entity client subject to beneficial ownership, you must identify one control person.
NOTE: It is possible that the control person may also be an ultimate beneficial owner.