Knowing corporate customers – keep your company’s information up to date

Who are the company’s key persons, and what information is asked about them?

We will ask for information about the company’s board members, owners, and beneficial owners. The information could be the person’s name, date of birth, nationality, country of residence, leadership position, if any, share of ownership, as well as the personal ID code in the case of a beneficial owner. 

Who is my company’s beneficial owner and why does the bank need information about them?

We are obliged to identify the natural persons who benefit from the activities of companies and entities. These are called beneficial owners. A beneficial owner is a natural person who

• owns more than 25 per cent of the company,
• holds over 25 per cent of the company’s voting rights or
• otherwise exercises control in the company, based on a contract.

If beneficial ownership is not established through ownership or contract, the managing director and members of the board of directors, for example, are considered beneficial owners in accordance with the new Act on Preventing Money Laundering and Terrorist Financing.

Who is the beneficial owner, for example, in a housing company and associations based on special legislation?

Beneficial owners include registered board members in company forms of housing companies, mutual real estate companies, religious communities and registered associations. In foundations, the beneficial owners are members of the board of trustees and members of any board of governors.

When filling in the form for an association based on special legislation, such as a road maintenance association or a co-owner society for a water area, in the section The company I represent is, select Registered association. In associations based on special legislation, beneficial owners include members of the decision-making body, such as members of an administrative committee or a trustee.

Why does the bank ask my company about its account transactions?

We need to have sufficient information about how our customers intend to use our services. We ask, for example, for your own estimate of the amount of account transactions, any possible international payments and whether OP is your main bank. 

This is how we get an overall picture of the purpose of use of the account and also can better identify any unusual transactions.

Why does the bank ask my company about for what purpose I withdraw cash or where I have received the cash I have deposited?

We need to know our customers and store information on their need for services, operations, financial standing and use of services. By law, we must, if necessary, also investigate the source of funds coming into the account or their purpose of use. 

Who is a politically exposed person?

To prevent misuse of public authority, our duty is to find out whether your company’s beneficial owner performs an important public function, or whether they are a so-called politically exposed person (PEP) in Finland or some other country, a family member of such a person or a close business associate. We have no intention to find out about political views or political activity.

Why does the bank ask about a company’s tax liability abroad?

Finland is committed to international treaties on the exchange of tax information. Banks and other financial institutions are obligated to find out the country where the customer is liable to pay tax and to collect and report taxation-related information on their customers to the Finnish Tax Administration. 

The Finnish Tax Administration, in turn, reports such information to those countries with which Finland has entered into tax treaties.

Kansainväliset verosopimukset (International tax treaties) >

Do I really have to answer these questions?

Yes. To be able to serve your company properly and according to regulation, we must have sufficient and up-to-date information as long as the customer relationship lasts. If needed, we will remind of updating the information or of replying to any request for information.

Why does the bank ask for information on the company so extensively?

We ask for various company and customer data so that we can offer the most suitable solutions for differing situations of your company’s business and can ensure that the current services meet your needs. 

This is how we fulfil the requirements set by regulation, because banks must, by law, know their customers. The customer’s identity must be verified from a reliable source. In addition, banks must have information on the customers’ financial standing, operations, use of services and the purpose of use of services. 

Whenever needed, the bank must also investigate the source of funds and assets. How necessary the information is depends on the duration, nature and extent of the customer relationship.

How frequently does the bank ask for information?

We ask for your information before the customer relationship begins and we will update it regularly as long as the customer relationship lasts. The information must, by law, be kept up to date as long as the customer relationship lasts.

Personal data processing >

Do all banks ask these questions?

By law, all banks are obliged to ask for information about their customer’s operations, nature and extent of the operations, financial standing and use of services. Banks need to know their customers’ operations and background as extensively as required by the customer relationship.

Banks may, however, do so in different ways and at different times. Nevertheless, all banks are bound by the same regulation and official regulations.

Financial Supervisory Authority – Customer due diligence and customer identification >

Additional information on the effect of international sanctions on corporate customers’ banking >