In May of 2018, a new FinCEN requirement came into effect.   The rule amends the Bank Secrecy Act and the Anti-Money Laundering program requirements, to include the obligation that financial institutions identify and verify the identity of beneficial owners (to ensure they are not on the OFAC list, OSFI list, etc.).  

 

This information is not used for tax reporting purposes.  Your EIN will be used for that purpose.  This form is strictly to be in compliance with federal regulations to identify the individual(s) who own the business who is utilizing the Propay account.


A Beneficial Owners Disclosure Form is a document required by financial institutions, and payment processors (like ProPay) to verify the individuals who ultimately own or control a legal entity, such as a corporation, partnership, or LLC. This is often referred to as identifying the "beneficial owners" of the entity.

Why Do You Have to Complete It for ProPay?

  1. Compliance with Anti-Money Laundering (AML) Laws: ProPay, like other financial service providers, is required to comply with anti-money laundering (AML) regulations and Know Your Customer (KYC) rules. These laws help to prevent financial crime, such as money laundering, terrorism financing, and tax evasion. The form ensures that ProPay knows who actually controls or benefits from the business.
  2. Customer Due Diligence (CDD): Financial institutions are required by law to perform due diligence on their customers. This includes identifying who the beneficial owners are to assess the risk associated with providing services to the entity.
  3. Bank Secrecy Act (BSA) and FATCA: In the U.S., financial institutions like ProPay must comply with the Bank Secrecy Act and the Foreign Account Tax Compliance Act (FATCA), which require transparency in financial transactions. The form helps ensure compliance with these regulations.