Podcast: Beneficial Ownership Defined And Analyzed

As Rich Consulting president Deana Rich explains in this week's paymentfacilitator.com podcast, the Treasury's beneficial ownership rule announced in May will require banks to perform KYC on all owners with more than 25 percent ownership as well as the person that manages or runs the business, and banks will likely turn that extra work over to ISOs or PFs underwriting merchants or submerchants.

There are different impacts to banks and their PF partners based on the size and ownership/operation structure of the merchant. The largest category of submerchants are sole proprietors or owned by one person, who also runs the business. All PFs are performing KYC on these owners and therefore there is no change to this category.