Reviewed by Craig Hoebing, Capital Market Funds, LLC - CBK-2007014 - Commercial Mortgage Banker · Updated October 2026
Borrowers confuse two federal regimes that both use the words beneficial ownership. The bank rule is 31 CFR 1010.230, opened on the eCFR on October 30, 2026. It requires covered financial institutions to keep written procedures, in their anti-money-laundering program, to identify and verify beneficial owners of legal-entity customers. Identification is at the time a new account is opened, unless an exclusion or exemption applies. The institution can use the certification in appendix A of the section, or collect the same information another way if the individual certifies its accuracy. Verification follows risk-based procedures. The regulation's definition has two prongs. One is each individual who owns 25 percent or more of the equity interests. The other is a single individual with significant responsibility to control, manage, or direct the entity, such as an executive officer or a managing member. A note to the definition says as many as four owners can fall under the ownership prong, and only one person must be named under the control prong. The same person can satisfy both.
FinCEN's Customer Due Diligence FAQs, opened the same day, describe a February 13, 2026 exceptive relief order. A covered institution may limit the identification to the first account, to later moments when it knows facts that call the old information into question, and to whatever its ongoing due-diligence procedures require, instead of repeating the full identification at every new account. The FAQ says using that relief is optional. A bank can still ask at every account. Budget time for the certification even if you have borrowed there before.
The Corporate Transparency Act report is a different filing
FinCEN's beneficial-ownership information page, alert updated August 11, 2026, says FinCEN finalized a rule under which U.S. companies are exempt from filing beneficial-ownership reports with FinCEN, reporting companies need not report U.S. persons, and U.S. persons need not provide that information to reporting companies. The page says the final rule became effective August 14, 2026. The Federal Register document for that rule, opened the same day, says the rule makes permanent the exemptions first set out in an interim final rule published March 26, 2025, and that foreign reporting companies can still have duties for foreign owners. A U.S. limited liability company that no longer files a report with FinCEN can still be asked by its bank for the certification under 31 CFR 1010.230. Do not treat the CTA headline as a waiver of the bank form.
Entity structure still matters to the loan. A single-purpose borrowing entity is single-purpose entities. The closing stack that includes these forms is commercial loan documents. Capital Market Funds is not a bank and does not run the bank's customer-identification program. Capital Market Funds is not a Fannie Mae DUS lender. The office is 7373 E Doubletree Ranch Rd #255, Scottsdale, AZ 85258. The phone is (480) 495-8072. Capital Market Funds, LLC - CBK-2007014 - Commercial Mortgage Banker and NMLS 1445066.
Sources
Questions
- If a U.S. company no longer files a CTA report, can the bank skip the ownership certification?
- No. FinCEN's August 2026 alert is about reports to FinCEN. 31 CFR 1010.230 still tells covered institutions to identify beneficial owners of legal-entity customers. They are different duties.
- How many people does 31 CFR 1010.230 say must be named?
- The ownership prong reaches individuals who own 25 percent or more, and the note says that can be as many as four. The control prong requires one individual with significant management responsibility. One person can be both.
- Must the bank collect the certification every time the same company opens another account?
- FinCEN's February 13, 2026 relief lets an institution limit collection to the first account, to later doubts, and to its ongoing procedures. The FAQ says using the relief is optional. Ask that institution. Do not assume.
- Does Capital Market Funds file the beneficial-ownership report for the borrower?
- No. We are not the bank and not FinCEN. Counsel and the covered institution handle their own forms. We can tell you a capital source has asked for the certification.