How often do banks check to see who the business owner is

[Brianthedog]

I own a delaware LLC. I have a business bank account for that LLC with a US bank.

I'd like to change the ownership of my LLC to an offshore corporation, instead of my personal name - but I'd prefer not to tell the bank (it took ages to get a bank setup, non-us owner, and i don't want the hassle).

So how often do banks check to see who the current owner of a delaware llc is? When we change ownership with the state of delaware i'm assuming they don't automatically tell the bank; at the end of the day, surely they don't know who the bank is that we deal with?

Will they never know? Do they tend to check once a year? How's it work folks?

 

[Sir Gelato]

Depending on tha bank, the regulation of the country, the type of client or risk that you represent as a customer. Also, the information that the bank can get through external resources.

 

[CaptK]

Its in your terms and conditions that you must inform them of any changes. They can hold your funds indefinitely if they find out.

 

[Martin Everson]

Brianthedog said:
I'd like to change the ownership of my LLC to an offshore corporation, instead of my personal name - but I'd prefer not to tell the bank (it took ages to get a bank setup, non-us owner, and i don't want the hassle).
Click to expand...

Errr.......don't do it. A law came into US on May 11, 2018 regarding certification of beneficial owners of legal entity accounts. If ownership changes in company you need to inform bank immediately. See answer to question 13 in below document.

https://www.fincen.gov/sites/default/files/2018-04/FinCEN_Guidance_CDD_FAQ_FINAL_508_2.pdf

Brianthedog said:
Will they never know? Do they tend to check once a year? How's it work folks?
Click to expand...

See answer to question 14 from above document. It's basically at the discretion of the bank whether they do periodic checks.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Brianthedog]

ok perfectly answered, thanks guys. I need to write 10 words to post a reply

 

[John Andrews]

Martin Everson said:
Errr.......don't do it. A law came into US on May 11, 2018 regarding certification of beneficial owners of legal entity accounts. If ownership changes in company you need to inform bank immediately. See answer to question 13 in below document.
Click to expand...

Isn't this about beneficial ownership though? If he transfers the LLC to an IBC he would still be the beneficial owner.

 

[Mark Rucken]

mange38 said:
Isn't this about beneficial ownership though? If he transfers the LLC to an IBC he would still be the beneficial owner.
Click to expand...

No one said IBC is owned by him?

If the bank was in Europe, I would say do it. Since it is a US bank, I think it is too risky.

 

[smartcard]

As long as you have a legal business, try your best to operate it fully compliant with the law of the country where you have set up the company.

One option would be: You may talk to the bank before you really make this ownership shift.