Midland Trust Company Current Regulations
Midland Trust Company operates in a regulated environment. The company recognizes all current regulations and has developed good relationships with the governmental agencies and departments involved in oversight of the industry and charged with ensuring those under their jurisdiction comply with appropriate laws and regulations.
Rules and Regulations of South Dakota Trust
As a South Dakota-chartered trust company, Midland Trust Company must comply with that state’s laws and regulations in regard to establishing situs, including:
- Maintaining office space in South Dakota. Midland Trust Company currently will maintain office space in Sioux Falls, South Dakota
- Holding board meetings. Midland Trust Company will hold no less than two governing board meetings with a majority physically present in South Dakota annually.
- Employing, engaging, or contracting with at least one trust officer or key employee
physically in South Dakota.
- Perform trust administration in South Dakota. Midland Trust Company will conduct specific trust administration duties out of its Sioux Falls, South Dakota office.
In compliance with SDCL section 51A-6A-11.1, at least three of the following services will be conducted wholly or partly in South Dakota for the accounts under administration, or custody of Midland Trust Company:
- Annual account reviews.
- Annual investment reviews.
- Trust accountings.
- Account correspondence.
- Completing trust account tax returns.
- Distributing account statements.
In compliance with SDCL section 51A-6A-11.1, Midland Trust Company’s office space shall:
- Be in premises distinct and divided from the office space of any other entity;
- Have the name of Midland Trust Company, the trust company’s charter, and certificate of authority of the trust company prominently displayed;
- Have access to premises in or adjacent to the office space to facilitate on site examinations by the division; and
- To the extent that Midland Trust Company maintains hard copies of any documents required to be maintained pursuant to SDCL section 51A-6A-30, have a secure fireproof file cabinet that contains all such hard copies.
Patriot Act and CIP Compliance
Midland Trust Company fully complies with the policies and procedures set forth by the USA Patriot Act. The United States Government first enacted this federal statute in 2001, but it was updated in 2006. The Secretary of the Treasury’s authority was expanded by the Act to impose regulations on financial transactions, specifically transactions involving foreign individuals and/or entities. The goal of the Act is to identify money-laundering transactions (or potential transactions). To do so, the Act requires specific individual disclosures for all new accounts. Midland Trust Company is required to identify any and all of the nominal and beneficial owners of all accounts and to verify identity in full compliance of the Act and by the corresponding custodial bank.
Midland Trust Company policies also require adherence to the Bank Secrecy Act, which entails providing the minimum information this act requires regarding prospective clients. Midland Trust operates in compliance with the Customer Identification Program (CIP) rule. This applies to custodial banks when opening accounts within the meaning or 31 CFR 103.121. The CIP’s intention is to allow custodians to find a reasonable belief that they know the true identity of all customers. To do so, Midland Trust Company requires a copy of the account owner’s driver’s license or passport. Insufficient proof of the prospective client’s identity through non-documentary methods mandates the custodian’s requirement of a copy of the driver’s license or passport.
Internal Revenue Service, Internal Revenue Code
Retirement accounts were created by the Employee’s Retirement Income Security Act (ERISA). Provisions of ERISA are categorized in Chapter 26 of the Internal Revenue Code (IRC). IRC sections 401, 408, and 4975 are some of the most pertinent. Code requirements of custodians include but are not limited to:
- Utilize form 5305-A for the account agreement
- Create annual reports using form 5498 to report the fair market value of each IRA’s assets
- Report the IRA owner’s amount of required minimum distributions
Trust Office Address
Midland Trust Company
330 N. Main Ave., Suite 203
Sioux Falls, SD 57104