Operations

What do you need to open a business account for a Corporation?

- Business Name (who will checks be made out to) - Articles of Incorporation need to be filed w/ SOS in that they're active - EIN - Physical & Mailing Addresses - Phone & Email - Driver's License (W9) of all officers - SSN (W9) of all officers - List of individuals authorized to transact on the account and in what capacity (signer only, enter into agreements, open/close accounts) - Collect adequate information to create CIFs on signers, so they can be properly related to the account (DL, DOB, SSN, phone, email) - If organization has a "non-profit status", it must be filed w/ SOS website as 501(c)3 or other non-profit status - Understanding of who will need online access/who may need to obtain information

What do you need to open a business account for a Limited Liability Company (LLC)?

- Business Name (who will checks be made out to) - Articles/Certificate of Organization need to be filed w/ SOS in that they're active - EIN - Physical & Mailing Addresses - Phone & Email - Driver's License (W9) of all member/managers - SSN (W9) of all member/managers - List of individuals authorized to transact on the account and in what capacity (signer only, enter into agreements, open/close accounts) - Collect adequate information to create CIFs on signers, so they can be properly related to the account (DL, DOB, SSN, phone, email) - Understanding of who will need online access/who may need to obtain information

What do you need to open a business account for a Sole Proprietor w/ EIN?

- Business Name (who will checks be made out to) - Fictitious Name/DBA paperwork from SOS - EIN - Physical & Mailing Addresses - Phone & Email - Driver's License of business owner - SSN of business owner - List of individuals authorized to transact on the account and in what capacity (signer only, enter into agreements, open/close accounts) - Collect adequate information to create CIFs on signers, so they can be properly related to the account (DL, DOB, SSN, phone, email) - Understanding of who will need online access/who may need to obtain information

What do you need to open a business account for a Sole Proprietor w/ SSN?

- Business Name (who will checks be made out to) - Fictitious Name/DBA paperwork from SOS - Physical & Mailing Addresses - Phone & Email - Driver's License of business owner - SSN of business owner - List of individuals authorized to transact on the account and in what capacity (signer only, enter into agreements, open/close accounts) - Collect adequate information to create CIFs on signers, so they can be properly related to the account (DL, DOB, SSN, phone, email) - Understanding of who will need online access/who may need to obtain information

What do you need to open a business account for a General Partnership/Limited Partnership?

- Business Name (who will checks be made out to) - Informal or Formal Partnership - If Formal, do you have documentation? You are not required to file this documentation with SOS - For Limited Partnership, a copy of the Statement of Qualification from SOS is required - EIN - Physical & Mailing Addresses - Phone & Email - Driver's License (W9) of all partners - SSN (W9) of all partners - List of individuals authorized to transact on the account and in what capacity (signer only, enter into agreements, open/close accounts) - Collect adequate information to create CIFs on signers, so they can be properly related to the account (DL, DOB, SSN, phone, email) - Understanding of who will need online access/who may need to obtain information

What do you need to open a business account for an Organization/Association?

- Business Name (who will checks be made out to) - Meeting Minutes detailing banking responsibilities would be helpful - EIN - Physical & Mailing Addresses - Phone & Email - Driver's License (W9) of all officers - SSN (W9) of all officers - List of individuals authorized to transact on the account and in what capacity (signer only, enter into agreements, open/close accounts) - Collect adequate information to create CIFs on signers, so they can be properly related to the account (DL, DOB, SSN, phone, email) - A way to identify your signers may be required especially if the organization/association is not officially registered w/ SOS - Understanding of who will need online access/who may need to obtain information

What entity types must be registered and active with the Secretary of State?

- LLCs - Corporations - Limited Partnerships - Incorporated Organizations/Associations

What entity types are not required to register with the Secretary of State?

- Sole Proprietorships - General Partnerships - Unincorporated Organizations/Associations

According to Business Accounts 101 Training, what are the 7 different business Ownership Types?

1 - Sole Proprietorships & DBAs 2 - General Partnerships 3 - Limited Partnerships 4 - Corporations 5 - Limited Liability Companies (LLC) 6 - Organizations/Associations 7 - Party Accounts

What 6 questions should a banker be asking before opening a business account?

1 - What type of business entity is this business? Sole Proprietor, LLC, Corporation, etc? 2 - Do you have your EIN? 3 - Are you registered and active with the Secretary of State? 4 - Do you have [other supporting documents] with you? 5 - Is everyone who needs to be on the account here today? 6 - Is there anyone who owns 25% or more of the business?

According to Business Accounts 101 Training, how many business Ownership Types are there?

7

How many bank regulations are there?

9

What is (DBA) Business using a Tradename?

A business may be registered under its legal name, but choose to do business under a different assumed name or tradename. This tradename would be prefaced by the letters DBA, for Doing Business As/

What is the Reg D?

A regulations that sets reserve requirements for the bank, transaction limitations on savings and money market accounts, etc.

What is a Control Individual?

A single individual who is significantly responsible for controlling, managing, or directing the entity. This individual may also be a Beneficial Owner, may be an owner with a share less than 25%, and/or may not own any part of the entity at all

Which businesses need an EIN?

All of them except for Sole Props and single member LLCs. Although Sole Props and single member LLCs may still have them if they want.

What is a Beneficial Owner?

An individual who has an ownership interest greater than 25%

How many Beneficial Owners can there be for "Legal Entity" accounts?

Anywhere from 0 - 4

What is the BSA/AML/CDD regulation?

Bank Secrecy Act/Anti-Money Laundering/Customer Due Diligence (yellow hammer) - meant to detect illegal monetary activity and monitor high risk accounts

Why should bankers first question be about what type of business entity the business is?

Because it determines what kinds of supporting documents they need to have with them in order to get the account set up.

What 2 parties must be identified for the Beneficial Owner Rule?

Beneficial Owner & Control Individual

What area of banking do Red Flag regulations apply to?

Both retail & commercial

What area of banking does CIP regulation apply to?

Both retail & commercial

What area of banking does the BSA/AML/CDD regulation apply to?

Both retail & commercial

What are of banking does the Reg D apply to?

Both retail and commercial

What area of banking does Reg CC apply to?

Both retail and commercial

Where can a Fictitious Business Name Statement be obtained?

By the owner at the County Recorder's Office

What documents must be filed for Sole Proprietorships?

Can I ask the calm concierge for cups? - CIP Information on the proprietor/owner (full legal name, TIN/SSN, DOB, physical address) - ID Verification on proprietor/owner - Account Information/Signature Card signed by all individuals authorized to transact on the account - Completed TIN Certification/W9 for the sole proprietorship's TIN - Completed Sole Proprietorship Resolution defining transaction authority - Fictitious Business Name Statement, if applicable - Collect adequate information to create CIFs on signers, so they can be properly related to the account (DL, DOB, SSN, phone, email)

What area of banking does Reg GG apply to?

Commercial only

What does "DBA" stand for?

Doing Business As

What are the Officer Titles for Sole Proprietorship entity types?

Either "Sole Proprietor" or "Owner"

What is Reg E?

Electronic Funds Transfers and Opt-in/Out - sets guidelines on all electronic transactions and therefore how the bank handles transactions when a customer's account is negative

T/F - You can complete a new business account setup without having the EIN.

F - If it's a business type that needs an EIN but they don't have it with them, you can't complete the account set up.

T/F - The name used in a Sole Proprietorship's business has to be the owner's last name.

F - It may include their first name, middle name, and/or last name

If the business name does not include the owner's name, for example - "John Doe DBA Radiator City" we would need to obtain a __

Fictitious Business Name Statement

What is Reg CC?

Funds Availability - sets guidelines for timeframes of placing holds on customers' deposits

What are the 2 "Different Account Types" Terry spoke about in Business Accounts 101 Training?

IOLTA & REOLTA/IBRETA

For which entities must you collect Beneficial Owner information for?

Ian never leaves church without his little purple bible. - Incorporated Organizations/Associations - Non Profit Corporations (CI only) - LLCs - Corporations - Partnerships - Business Trusts

What is Reg GG?

Internet Gambling - requires that we ask our customers if they plan to use their accounts for illegal online gambling.

Who does CIP apply to for Sole Proprietorships?

It applies to the individual/owner

What information do we need to collect with Beneficial Owners and Control Individuals?

Nancy threw a tantrum during the picnic. - Name - Title - Address - TIN - DOB - Photo of ID/DL that's unexpired

Do we need to verify if Sole Proprietorships are registered with the SOS website?

No

Why might there be zero Beneficial Owners?

No one owns more than 25% and/or because non-profits don't have owners

Are we required to obtain Beneficial Owner information for Sole Proprietorships?

No, because only one owner on this type of account and they already own 100%

Who has the authority to transact on Sole Proprietorship business accounts?

Only the sole proprietor has that authority, unless others are designated on the resolution

What are Red Flag regulations?

Part of the FACT Act - requires that all discrepancies of information need to be resolved at every account opening

What is the CIP regulation?

Part of the USA Patriot Act - requires that the bank needs to "know" our customers and therefore tells us what documentation is required upon the first account opening

What is Reg P?

Privacy (Gramm-Leach-Bliley Act) - tells our customers what we do with their non-public information

What are of banking does Reg DD apply to?

Retail only

What area of banking does Reg E apply to?

Retail only

What area of banking does Reg P apply to?

Retail only

T/F - A sole proprietor typically conducts business under a name that includes the owner's name.

T - For example, "John Doe DBA John's Radiator Service"

Why do we get Beneficial Owner information?

The rule requires that financial institutions identify and record information about certain key individuals associated with what the rule defines as "Legal Entity" accounts.

Incorporated organizations/associations are basically just what?

They are just corporations. We will them up this way in onboard.

What is Reg DD?

Truth in Savings - requires the bank to provide truthful, clear information to customers including sending statements/notices to customers, using words "Annual Percentage Yield" when quoting interest rates to customers at least once in the conversations. Also, where Truth in Savings Disclosures come from

Do we need to pull credit for someone opening a sole proprietorship account?

Yes, if permissible purpose exists. Meaning the individual owns the funds and has transaction authority.

Can we add PODs for Sole Proprietorships?

Yes, it's the only business account this can be done for

Is it ok to get a photo of an ID for BO/CI?

Yes. Get the original or a photo