Must a credit union identify and verify beneficial ownership for each account opened by a legal entity member?

The correct answer is based on the guidelines outlined by the Bank Secrecy Act (BSA) regarding the beneficial ownership of legal entity members. The regulation clearly states that financial institutions, including credit unions, are required to identify and verify the beneficial ownership information at the time of account opening. However, if the credit union already has existing verified information for the legal entity member that is still valid and reliable, they may not need to re-verify that information for each subsequent account opened by that entity.

This means that as long as there are reliable records that have been verified previously, the credit union can rely on this information instead of requiring it again for each new account. This approach minimizes the redundant burdens on both the institution and the member while still adhering to the intent of the BSA, which is to ensure that financial institutions can adequately monitor for compliance and risk.

The other options suggest a misunderstanding of the regulatory requirements regarding beneficial ownership identification and verification. For instance, stating that verification is necessary for every account opened does not consider existing verified information, making it less efficient. Similarly, limiting the requirement to only accounts exceeding a certain value or making it optional based on member request diverges from regulatory adherence and could potentially expose the institution to compliance risks.