Reliance on another financial institution

If two separate, unrelated banks have a mutual customer that is engaging in an unrelated loan at each bank that is NOT a participation loan, can one bank rely on the other bank's beneficial ownership efforts? Again, there is no relation between the two banks or the loan being conducted, the only common denominator is the each bank is working on a loan for the same legal entity. We have a situation to where the legal entity's beneficial owner does not want to supply his information to us as he already provided it to the other bank that is working on a separate loan for him. It was basically suggested for us to ask the other bank for the beneficial owner information. It is also being suggested that this falls under the reliance provision listed below. I am thinking it does not as there is nothing connecting us to the other bank or the loan they are working on. (j)Reliance on another financial institution. A covered financial institution may rely on the performance by another financial institution (including an affiliate) of the requirements of this section with respect to any legal entity customer of the covered financial institution that is opening, or has opened, an account or has established a similar business relationship with the other financial institution to provide or engage in services, dealings, or other financial transactions, provided that: (1) Such reliance is reasonable under the circumstances; (2) The other financial institution is subject to a rule implementing 31 U.S.C. 5318(h) and is regulated by a Federal functional regulator; and (3) The other financial institution enters into a contract requiring it to certify annually to the covered financial institution that it has implemented its anti-money laundering program, and that it will perform (or its agent will perform) the specified requirements of the covered financial institution's procedures to comply with the requirements of this section