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Ask The Expert - November 2018

by Stacy Wise | Nov 28, 2018

Know Your Customer

Why do banks ask so many questions?

Know Your Customer

Banking is based on trust. This trust consists of good service, knowing one’s customer, and the right solutions. We ask a variety of questions because we wish to know our customers and understand their financial situation so we can offer the best products and services for their needs.

There are some questions we ask for other reasons. As a financial institution, a bank has an obligation to prevent money laundering, terrorism and financial crimes. Therefore, some of our questions are related to these matters.

Why Does The Bank Ask?

Banks have a statutory obligation to identify and know their customers. In addition to personal identifiable information, the bank must have sufficient information on, among other things, the origin of the customer’s funds. By giving us the information we request, you support our work against crime and assume your share of social responsibility. All information you give us is treated confidentially in accordance with the regulations on bank secrecy. To be specific, it’s Section 326 of the USA Patriot Act that requires us to obtain, verify and record information that identifies each person who opens an account.

New Rules for Legal Entities

Effective, May 11, 2018, all banks are subject to new rules under the Bank Secrecy Act that will aid the government in the fight against crimes to evade financial measures designed to combat terrorism and other national security threats. This means that MNB will collect beneficial ownership information from legal entity customers. Any time an account is opened or renewed for a legal entity, we will request information that identifies the ultimate beneficial owner(s) and controlling person of the legal entity.  The required identifying information includes, name, date of birth, physical address, taxpayer identification number, and other information that will allow us to identify the beneficial owner. While we understand the information requested is personal and sensitive, we obtain this information in order to comply with the law.  All information is stored securely and handled with the same standard of privacy that we have always maintained.

For more information

• USA Patriot Act – Please visit the Financial Crimes Enforcement Network
What to Bring to Open a Personal Account
What to Bring to Open a Business Account


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