Handling Beneficial Owner

Hi,

I am using Plaid to create business verified customer to receive money from customers. When the customer is not of sole proprietorship business type, can I simply use the certify-beneficial-owner link on those customer without creating a beneficial owner for them? I did this in the sandbox environment and I successfully create transfers to pull money from these customers. Is this acceptable to do in the production environment?

Thanks

Hi @Jason_Tsui ,

In production your business end users of type llc , corporation and partnership must be able to create a beneficial owner in order to remain compliant in customer due diligence requirements.

If there is no individual with at least 25% ownership, that specific business Customer can go straight to certifying that there are no beneficial owners.

As for businesses of type soleProprietorship, they are exempt from Beneficial Ownership. Meaning, once created, they don’t have to enter beneficial owner information or even certify them. You can find out more about which business structure is required to add beneficial owners here