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Business Account Registration Requirements

Answered by: 
Randy Carey

Question: 
When opening a business account, is it required that a bank have the company register with the state that the bank is located in? For instance, we see quite a few companies that are registered in Delaware but the company also operates in Tennessee. I know they should register with the Secretary of State in TN, but is it the banks responsibility to manage that process and make them do it before we open an account for them? Will any of this change with the new beneficial ownership rules?
Answer: 

You are asking business decision questions.

1. If business wants to open an account at your bank and they are not even doing business in your State, why are they coming to you, why do they need a bank account in your State, and do you want to do business with them.

2. If they are doing business in your State and your State requires that they be registered in your State, do you want to do business with an unregistered business.

You need to assess the risks and make your decision. This has nothing to do with beneficial owners.

First published on 04/09/2023

Filed under: 
Compliance
Filed under compliance as: 
Business Accounts/Checks
Corporate Accounts/Checks

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