A beneficial owner is any individual who owns at least 25% of a business or exercises significant control over it, regardless of their formal title. Payment processors and financial institutions are required by law to collect information about beneficial owners when opening new merchant accounts. This helps prevent money laundering and ensures accountability. Each beneficial owner must provide identification and documentation verifying their ownership or control.
When applying for a new merchant account, you’ll be asked to disclose beneficial owners and provide supporting documentation. AltoPay collects and verifies this information during underwriting to meet regulatory requirements. Failing to provide complete or accurate data can delay approval or result in declined applications. Keeping this information up to date also helps prevent compliance issues if your business structure changes over time.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
