Account Opening
What are some things a banker should go over with the customers before starting on the new business discovery tool?
Walk them through the account opening process and set a time precedence for the account opening process.
What's the minimum opening deposit required for a Small Business Checking?
$100.00
Does Fidelity Bank charge business customers for change orders?
Yes.
What documents are required to open a sole proprietorship business account if it's tax reporting under the business and not the sole owner?
Letter from the IRS designating the employer tax identification number of the business.
Sole owner wishes to close out a sole proprietorship which is tax reporting under their social security number. They are dissolving the business. What documentation is required to close?
A. Nothing.
B. Dissolution paperwork and meeting minutes from business owners stating how the funds are to be disbursed.
C. Written statement stating business is dissolved.
D. Dissolution paperwork only.
A. Nothing. They are the sole owner and the tax reporting individual for this business, so they are authorized to do this without paperwork.
What are some important business identification information pieces the banker should verify are within policy before starting the new business discovery tool?
A. Verify business type (Sole Prop, LLC, etc.).
B. Verify business type documents are all with the customers and are valid (Signed operating agreement).
C. Verify all individuals who are going to be on the account are in person.
D. Verify all individuals who are going to be on the account have valid, unexpired forms of ID and proof of address if it's not current on their IDs.
E. A & B.
F. A, B, and C.
G. All of the above.
G. All of the above.
How many free per item transactions (checks, wire transfers, ACHs, cash, transfers, etc.) can a Business Select Checking have?
A. 150 B. 120
C. Unlimited D. 300
Authorized signer on a business account is requesting to get balance information and make a cash withdrawal from the account. Do they have the authority to perform these functions?
Yes.
True or False - In order to open an LLC business account the members must bring either the articles of organization/formation of domestic LLC/letter from the secretary of state and the EIN letter from the IRS.
False. They are required to bring the articles of organization/formation of domestic LLC/letter from the secretary of state, EIN letter from the IRS and a signed operating agreement.
Signer on a business LLC wishes to close out the account and make the funds payable to themselves. What documentation would the bank need to fulfill this request?
Dissolution paperwork and meeting minutes signed by all owners/members designating that the business is closed along with how the funds are to be disbursed.
True or False. Banker must obtain enhanced due diligence information on how the business will operate on the account and how it operates in general.
True.
If a business customer writes a lot of checks on a monthly basis, what is a good product/service would make this process safer for them?
Positive Pay.
True or False. Sole proprietor owner, Elyse Bozarth has a check payable to Bozarth's Financial Planning she would like to cash. Banker notices the business account for this request is tax reporting under Bozarth's Financial Planning. The banker shouldn't cash the check because Fidelity Bank's policy states we can't cash checks payable to a business/trust/estate.
False. Sole proprietorships are the exception to the rule.
The following are the ownership percentages of a business corporation. Which ones should we gather CIP information on?
Owner 1 = 30% Owner 2 = 35%
Owner 3 = 20% Owner 4 = 15%
Owner 1 and 2. We are only required to gather CIP information on the owners who have a 25% stake or more in the business.
Signer on a corporation account wishes to close it out and make some of the funds payable to the business and some to themselves since they are simply moving it to another bank. They own 10% of the business. Can the banker do this for the signer?
No. If we are to hard close a business account due to the funds simply being moved to another bank we must make the funds payable to the business.
When creating the business resolution document which individuals can be on it?
A. ASG (Authorized Signers). B. SGN (Signers).
C. MEM (Members). D. MGR (Managers).
E. All of the above. F. B.
G. B and C. H. B, C, and D.
H. B, C, and D.
If a business customer mentions they are needing something that helps them with processing their direct deposit/payroll correctly for their employees, what service would you recommend?
PayChex.
An authorized signer on a business account wishes to have statements printed off of it so that they can get started on corporate taxes. Is this something the authorized signer can do?
Yes, but only if the owners/full powered signers/members on the business account authorize that. An authorized signer is supposed to transact on behalf of the business and get balance information only.
What documents are required to open a business organization/association account?
Association/Organizational charter and EIN letter from the IRS.
Signer on a business partnership account wishes to close out the account and make the funds payable to themselves. What documents are required to process the transaction this way?
Dissolution paperwork and meeting minutes signed by all partners notating the company is closed and where the funds are to be disbursed to.
True or False - When disclosing business account documents the banker should be verbally disclosing the same information each time they open a business account as the bank is federally required to verbally provide specific information for each account without exception.
False. The banker should primarily disclose the information that's most applicable to the customer in front of them per Fidelity Bank. Also, the bank is not required by the federal government to verbally disclose any of the account opening documents, but they do have to electronically or physically provide them to the customer.
If a business customer deposits a lot of checks in person, what would be a good service that they do pay a fee for that would make this process more convenient for them?
Depositor Remote Capture.
True or False. A check is payable to Aubri Holland who's the 100% beneficial owner of Holland's Magnificent Movie Re-Runs LLC and a signer on it. She wants to deposit the check into that company's business account. This request can't be performed because the check isn't payable to the business and this isn't a sole proprietorship.
False. Since Aubri is a signer on the business account and the check is payable to her, she can sign the check over on the back of the check as "Pay to the order of Holland's Magnificent Movie Re-Runs LLC," sign it and then deposit it.
True or False - We are only required to gather business profile enhanced due diligence because that's most applicable to the customer.
False. We are required to gather enhanced due diligence information on how the business operates outside of the bank and on how they will operate on their account with us.
Signer on a non-profit organization/association wishes to close out the account and make the funds payable to themselves and another signer on the account. What business documents would we have to refer to in order what the next steps are for this customer?
The organizational/association charter and/or by-laws of the business itself would need to be reviewed by the banker and/or account services to determine that.