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In banking, the beneficial owners of a legal entity are those individuals who have a large equity interest or control over the entitys financials. Banks are required to collect this information in order to prevent money laundering.
FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category.
Source: FDIC. The PDIC pays insured deposits after the validity of the claim is established. A claim is normally processed and paid on the same day it is filed, except in cases where the banks records are inaccurate or inadequate, or the claimant is unable to provide the required documentation.
When there is no open bank acquirer for the deposits, the FDIC will pay the depositor directly by check up to the insured balance in each account. Such payments usually begin within a few days after the bank closing.
Are some companies exempt from the reporting requirement? Yes, 23 types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, and certain large operating companies.
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SUBMITTING YOUR CLAIM Electronically file your claim via the internet by completing an online Proof of Claim form and attaching supporting documentation. Submitting your claim via the FDIC website is convenient, secure, and inexpensive, and will also help to expedite the handling of your claim.
Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank. If you want your funds insured by the FDIC, simply place your funds in a deposit account at an FDIC-insured bank and make sure that your deposit does not exceed the insurance limit for that ownership category.
Pass-through deposit insurance covers funds in deposit accounts at FDIC-insured depository institutions where the funds are owned by a principal but held by a nominal depositor in a fiduciary capacity (typically, as an agent or custodian).

04 4 securities form