On the Merchant Application, what is a controlling individual?

Modified on Wed, 18 May 2022 at 05:22 PM

What is a controlling individual?

This information is required as part of the rules and regulations that govern payment processing.

We must collect information on one individual who has controlling influence over the organization, such as a CFO, President, etc. If you are a sole proprietorship, you can designate yourself as this individual. If the organization is a partnership, corporation, or LLC, please select one person who has the authority to move money on behalf of the company. 

Federal regulations require that financial institutions to obtain, verify, and record information about one controlling individual of legal entity. Legal entities can be abused to disguise involvement in terrorist financing, money laundering, tax evasion, corruption, fraud, and other financial crimes. Requiring the disclosure of key individuals who own or control a legal entity (i.e., the beneficial owners) helps law enforcement investigate and prosecute these crimes.

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