Form A is an official part of a private credit agreement that needs to be understood.
The purpose of this article is to explain to you what this form is for and how to fill it out.
An official act integrated into the personal loan contract
The law on money laundering CBD 20 provides that the identity of the beneficial owner of the assets is verified by banks when establishing a business relationship and in particular when a personal loan is granted.
The beneficial owner of the assets Is the person to whom the funds used to pay the monthly credit payments belong or will belong
In accordance with the legislation, the bank therefore asks the borrower to fill out a Form A to declare who owns or will hold the funds needed to repay the credit.
How do I fill out Form A correctly?
The borrower designates the beneficial owner directly in the credit contract or on a separate form.
If the borrower is the sole beneficial owner, that is to say that the repayment of the credit will be ensured by its own funds
- You will have to check the first box of Form A Entitled “The contracting party is the sole beneficial owner of the assets used to repay the loan”
- In this case, there is no need to re-enter the name and address of the borrower.
If the borrower designates a third party, that is to say that the repayment of the credit will be provided by someone else's funds
- You will have to check the second box on Form A whose title is “The beneficial owner of the assets is a person other than the contracting party”
- The third party beneficial owner must be identified and his information completed (first name, last name, address, date of birth, nationality)
Good to know: Banks generally refuse credit applications for which the borrower designates a third party beneficial owner
What are the requirements for Form A
To ensure the conformity of Form A and to avoid the rejection of the document signed by the Bank, attention should be paid to certain points.
- The form should be must be completed and signed by the borrower
- The borrower must be duly identifiedFIé using an official identification document including a photograph (passport, identity card, driver's license, or residence permit).
- The document cannot be crossed out or corrected using a concealer Blanco
- In the case of false statements on Form A, in accordance with framework of procedures for CBD 20, the borrower can face criminal sanctions, heavy fines, and prison sentences.
In case of uncertainty, contact your Credial team for any questions regarding Form A
