{"id":11055,"date":"2024-02-14T13:23:05","date_gmt":"2024-02-14T18:23:05","guid":{"rendered":"https:\/\/faisalkhan.com\/?page_id=11055"},"modified":"2024-03-12T09:20:28","modified_gmt":"2024-03-12T13:20:28","slug":"bank-held-for-benefit-of-fbo-account","status":"publish","type":"page","link":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/","title":{"rendered":"Bank-Owned For Benefit Of (FBO) Account"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\" id=\"h-definition\">Definition<\/h3>\n\n\n\n<p>A bank-owned For Benefit Of (FBO) account is a type of financial account where funds are held by a financial institution but are designated for the benefit of another party. Essentially, the bank holds the account in its name on behalf of another entity or individuals. These accounts are used to segregate customers&#8217; funds from the bank&#8217;s own funds, ensuring that the money is held for specific purposes and beneficiaries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-usage-context\">Usage Context<\/h3>\n\n\n\n<p>FBO accounts are commonly used in various scenarios within the banking and financial industry, including:<\/p>\n\n\n\n<div class=\"wp-block-stackable-icon-list stk-block-icon-list stk-block stk-4bce58b\" data-block-id=\"4bce58b\"><svg style=\"display:none\"><defs><g id=\"stk-icon-list__icon-svg-def-4bce58b\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 190 190\"><polygon points=\"173.8,28.4 60.4,141.8 15.7,97.2 5.1,107.8 60.4,163 184.4,39 173.8,28.4\"\/><\/svg><\/g><\/defs><\/svg><ul class=\"stk-block-icon-list__ul stk-block-icon-list--column\">\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-34dfccb\" data-block-id=\"34dfccb\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-4bce58b\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Payment Processors<\/strong>: To hold funds for clients before transferring to their actual bank accounts.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-34633c4\" data-block-id=\"34633c4\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-4bce58b\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Trust and Escrow Services<\/strong>: To hold funds in trust during transactions, such as real estate deals.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-3ef6efa\" data-block-id=\"3ef6efa\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-4bce58b\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Brokerage Firms<\/strong>: To hold clients&#8217; funds before they are invested.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-0cc2565\" data-block-id=\"0cc2565\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-4bce58b\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Wealth Management<\/strong>: For managing funds on behalf of beneficiaries.<\/span><\/div><\/li>\n<\/ul><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-importance\">Importance<\/h3>\n\n\n\n<p>FBO accounts are crucial for ensuring the safety and proper allocation of funds. They provide a clear distinction between the financial institution&#8217;s funds and the funds held for clients, which is essential for regulatory compliance, financial transparency, and trust in financial transactions. This segregation also protects the beneficiaries&#8217; funds in the event of the bank&#8217;s insolvency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-users\">Users<\/h3>\n\n\n\n<div class=\"wp-block-stackable-icon-list stk-block-icon-list stk-block stk-49b2786\" data-block-id=\"49b2786\"><svg style=\"display:none\"><defs><g id=\"stk-icon-list__icon-svg-def-49b2786\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 190 190\"><polygon points=\"173.8,28.4 60.4,141.8 15.7,97.2 5.1,107.8 60.4,163 184.4,39 173.8,28.4\"\/><\/svg><\/g><\/defs><\/svg><ul class=\"stk-block-icon-list__ul stk-block-icon-list--column\">\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-be2b9f0\" data-block-id=\"be2b9f0\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-49b2786\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Businesses and Corporations<\/strong>: Utilize FBO accounts for managing payroll, vendor payments, and other operational funds.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-37a0aaf\" data-block-id=\"37a0aaf\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-49b2786\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Financial Institutions and Payment Processors<\/strong>: To manage funds on behalf of their clients.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-b90952a\" data-block-id=\"b90952a\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-49b2786\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Regulatory Bodies and Compliance Officers<\/strong>: Monitor FBO accounts to ensure compliance with AML (Anti-Money Laundering), KYC (Know Your Customer), and other financial regulations.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-38da8f1\" data-block-id=\"38da8f1\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-49b2786\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Consumers and Investors<\/strong>: Benefit indirectly from the protection and efficient management of their funds.<\/span><\/div><\/li>\n<\/ul><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-application\">Application<\/h3>\n\n\n\n<p>The process of using FBO accounts typically involves the following steps:<\/p>\n\n\n\n<div class=\"wp-block-stackable-icon-list stk-block-icon-list stk-block stk-f0eb2f3\" data-block-id=\"f0eb2f3\"><ol class=\"stk-block-icon-list__ol stk-block-icon-list--column\">\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-037b69a\" data-block-id=\"037b69a\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk-block-icon-list-item__marker\" aria-hidden=\"true\"><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Account Setup<\/strong>: The financial institution creates an FBO account in its name but specifies the beneficiaries or the purpose for which the funds are held.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-c46f4dc\" data-block-id=\"c46f4dc\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk-block-icon-list-item__marker\" aria-hidden=\"true\"><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Fund Transfers<\/strong>: Funds are deposited into the FBO account by or on behalf of the beneficiaries.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-4353883\" data-block-id=\"4353883\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk-block-icon-list-item__marker\" aria-hidden=\"true\"><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Management and Allocation<\/strong>: The bank manages the funds according to the account&#8217;s terms, which might include disbursing payments, investing on behalf of the beneficiary, or simply holding the funds.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-3219eef\" data-block-id=\"3219eef\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk-block-icon-list-item__marker\" aria-hidden=\"true\"><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Reporting and Compliance<\/strong>: Regular reporting to regulatory bodies to ensure compliance with financial laws and regulations.<\/span><\/div><\/li>\n<\/ol><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros-and-cons\">Pros and Cons<\/h3>\n\n\n\n<p><strong>Advantages<\/strong>:<\/p>\n\n\n\n<div class=\"wp-block-stackable-icon-list stk-block-icon-list stk-block stk-c8bc142\" data-block-id=\"c8bc142\"><svg style=\"display:none\"><defs><g id=\"stk-icon-list__icon-svg-def-c8bc142\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 190 190\"><polygon points=\"173.8,28.4 60.4,141.8 15.7,97.2 5.1,107.8 60.4,163 184.4,39 173.8,28.4\"\/><\/svg><\/g><\/defs><\/svg><ul class=\"stk-block-icon-list__ul stk-block-icon-list--column\">\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-cd1b20b\" data-block-id=\"cd1b20b\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-c8bc142\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Security<\/strong>: Provides a high level of security for funds by keeping them separate from the bank&#8217;s assets.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-13e1010\" data-block-id=\"13e1010\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-c8bc142\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Compliance<\/strong>: Facilitates adherence to regulatory requirements by clearly segregating client funds.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-a30b056\" data-block-id=\"a30b056\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-c8bc142\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Flexibility<\/strong>: Can be used across various sectors for different purposes, offering flexibility in fund management.<\/span><\/div><\/li>\n<\/ul><\/div>\n\n\n\n<p><strong>Disadvantages<\/strong>:<\/p>\n\n\n\n<div class=\"wp-block-stackable-icon-list stk-block-icon-list stk-block stk-1035bc0\" data-block-id=\"1035bc0\"><svg style=\"display:none\"><defs><g id=\"stk-icon-list__icon-svg-def-1035bc0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 190 190\"><polygon points=\"173.8,28.4 60.4,141.8 15.7,97.2 5.1,107.8 60.4,163 184.4,39 173.8,28.4\"\/><\/svg><\/g><\/defs><\/svg><ul class=\"stk-block-icon-list__ul stk-block-icon-list--column\">\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-de18c78\" data-block-id=\"de18c78\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-1035bc0\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Complexity<\/strong>: Managing FBO accounts can be administratively complex and require additional oversight.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-8a551fb\" data-block-id=\"8a551fb\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-1035bc0\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Costs<\/strong>: There may be higher costs associated with setting up and maintaining FBO accounts due to the extra compliance and management efforts.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-fb9f526\" data-block-id=\"fb9f526\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk--svg-wrapper\"><div class=\"stk--inner-svg\"><svg aria-hidden=\"true\" width=\"32\" height=\"32\"><use xlink:href=\"#stk-icon-list__icon-svg-def-1035bc0\"><\/use><\/svg><\/div><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Limited Access<\/strong>: Beneficiaries might have limited immediate access to funds since the bank controls the account.<\/span><\/div><\/li>\n<\/ul><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-real-world-examples\">Real-World Examples<\/h3>\n\n\n\n<div class=\"wp-block-stackable-icon-list stk-block-icon-list stk-block stk-58a485b\" data-block-id=\"58a485b\"><ol class=\"stk-block-icon-list__ol stk-block-icon-list--column\">\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-0b4f7c9\" data-block-id=\"0b4f7c9\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk-block-icon-list-item__marker\" aria-hidden=\"true\"><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Payment Processing<\/strong>: A payment processor uses an FBO account to receive payments on behalf of online merchants. The funds are held temporarily before being distributed to the merchants&#8217; individual accounts.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-a998da3\" data-block-id=\"a998da3\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk-block-icon-list-item__marker\" aria-hidden=\"true\"><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Real Estate Escrow Services<\/strong>: During a property sale, an escrow service holds the buyer&#8217;s deposit in an FBO account until the sale is finalized, ensuring the funds are safely held and properly allocated upon closing.<\/span><\/div><\/li>\n\n\n\n<li class=\"wp-block-stackable-icon-list-item stk-block-icon-list-item stk-block stk-d94f5f0\" data-block-id=\"d94f5f0\"><div class=\"stk-block-icon-list-item__content\"><span class=\"stk-block-icon-list-item__marker\" aria-hidden=\"true\"><\/span><span class=\"stk-block-icon-list-item__text\"><strong>Crowdfunding Platforms<\/strong>: Funds raised for projects or causes are held in FBO accounts, with the platform managing the distribution of funds based on the campaign&#8217;s success and predefined criteria.<\/span><\/div><\/li>\n<\/ol><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-analogies\">Analogies<\/h3>\n\n\n\n<p>Think of an FBO account as a safety deposit box within a bank. Just as valuable items or documents are stored in the safety deposit box for a specific person (with the bank safeguarding it), funds in an FBO account are held by the bank but are earmarked for a specific beneficiary or purpose. This arrangement ensures that the items (or funds) are kept safe and will be used or given to the rightful owner or for the intended purpose.<\/p>\n\n\n\n<p>This comprehensive overview provides a clear understanding of bank-owned FBO accounts within the banking and financial services sector, highlighting their application, significance, and impact on various stakeholders in the United States.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Definition A bank-owned For Benefit Of (FBO) account is a type of financial account where funds are held by a financial institution but are designated for the benefit of another party. Essentially, the bank holds the account in its name on behalf of another entity or individuals. These accounts are used to segregate customers&#8217; funds [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":3611,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_uag_custom_page_level_css":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"blocksy_meta":[],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","gb-block-post-grid-landscape":"","gb-block-post-grid-square":"","yarpp-thumbnail":""},"post_excerpt_stackable":"<p>Definition A bank-owned For Benefit Of (FBO) account is a type of financial account where funds are held by a financial institution but are designated for the benefit of another party. Essentially, the bank holds the account in its name on behalf of another entity or individuals. These accounts are used to segregate customers&#8217; funds from the bank&#8217;s own funds, ensuring that the money is held for specific purposes and beneficiaries. Usage Context FBO accounts are commonly used in various scenarios within the banking and financial industry, including: Payment Processors: To hold funds for clients before transferring to their actual&hellip;<\/p>\n","category_list":"","author_info":{"name":"Faisal Khan","url":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","gb-block-post-grid-landscape":"","gb-block-post-grid-square":"","yarpp-thumbnail":""},"post_excerpt_stackable_v2":"<p>Definition A bank-owned For Benefit Of (FBO) account is a type of financial account where funds are held by a financial institution but are designated for the benefit of another party. Essentially, the bank holds the account in its name on behalf of another entity or individuals. These accounts are used to segregate customers&#8217; funds from the bank&#8217;s own funds, ensuring that the money is held for specific purposes and beneficiaries. Usage Context FBO accounts are commonly used in various scenarios within the banking and financial industry, including: Payment Processors: To hold funds for clients before transferring to their actual&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Faisal Khan","url":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"comments_num_v2":"0 comments","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.6 (Yoast SEO v22.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank-Owned For Benefit Of (FBO) Account - Faisal Khan<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank-Owned For Benefit Of (FBO) Account\" \/>\n<meta property=\"og:description\" content=\"Definition A bank-owned For Benefit Of (FBO) account is a type of financial account where funds are held by a financial institution but are designated for the benefit of another party. Essentially, the bank holds the account in its name on behalf of another entity or individuals. These accounts are used to segregate customers&#8217; funds [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/\" \/>\n<meta property=\"og:site_name\" content=\"Faisal Khan\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/faisalkhanpaymentconsultant\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-12T13:20:28+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@FaisalKhanllc\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/\",\"url\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/\",\"name\":\"Bank-Owned For Benefit Of (FBO) Account - Faisal Khan\",\"isPartOf\":{\"@id\":\"https:\/\/faisalkhan.com\/#website\"},\"datePublished\":\"2024-02-14T18:23:05+00:00\",\"dateModified\":\"2024-03-12T13:20:28+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/faisalkhan.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Learn\",\"item\":\"https:\/\/faisalkhan.com\/learn\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Payments Wiki\",\"item\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Bank-Owned For Benefit Of (FBO) Account\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/faisalkhan.com\/#website\",\"url\":\"https:\/\/faisalkhan.com\/\",\"name\":\"Faisal Khan\",\"description\":\"Get expert guidance on licensing, banking, payments, and cryptocurrency. Faisal Khan is your go-to resource for all your financial services needs.\",\"publisher\":{\"@id\":\"https:\/\/faisalkhan.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/faisalkhan.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/faisalkhan.com\/#organization\",\"name\":\"Faisal Khan LLC\",\"url\":\"https:\/\/faisalkhan.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png\",\"contentUrl\":\"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png\",\"width\":285,\"height\":80,\"caption\":\"Faisal Khan LLC\"},\"image\":{\"@id\":\"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/faisalkhanpaymentconsultant\",\"https:\/\/x.com\/FaisalKhanllc\",\"https:\/\/www.linkedin.com\/company\/faisal-khan-llc\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Bank-Owned For Benefit Of (FBO) Account - Faisal Khan","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/","og_locale":"en_US","og_type":"article","og_title":"Bank-Owned For Benefit Of (FBO) Account","og_description":"Definition A bank-owned For Benefit Of (FBO) account is a type of financial account where funds are held by a financial institution but are designated for the benefit of another party. Essentially, the bank holds the account in its name on behalf of another entity or individuals. These accounts are used to segregate customers&#8217; funds [&hellip;]","og_url":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/","og_site_name":"Faisal Khan","article_publisher":"https:\/\/www.facebook.com\/faisalkhanpaymentconsultant","article_modified_time":"2024-03-12T13:20:28+00:00","twitter_card":"summary_large_image","twitter_site":"@FaisalKhanllc","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/","url":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/","name":"Bank-Owned For Benefit Of (FBO) Account - Faisal Khan","isPartOf":{"@id":"https:\/\/faisalkhan.com\/#website"},"datePublished":"2024-02-14T18:23:05+00:00","dateModified":"2024-03-12T13:20:28+00:00","breadcrumb":{"@id":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/bank-held-for-benefit-of-fbo-account\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/faisalkhan.com\/"},{"@type":"ListItem","position":2,"name":"Learn","item":"https:\/\/faisalkhan.com\/learn\/"},{"@type":"ListItem","position":3,"name":"Payments Wiki","item":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/"},{"@type":"ListItem","position":4,"name":"Bank-Owned For Benefit Of (FBO) Account"}]},{"@type":"WebSite","@id":"https:\/\/faisalkhan.com\/#website","url":"https:\/\/faisalkhan.com\/","name":"Faisal Khan","description":"Get expert guidance on licensing, banking, payments, and cryptocurrency. Faisal Khan is your go-to resource for all your financial services needs.","publisher":{"@id":"https:\/\/faisalkhan.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/faisalkhan.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/faisalkhan.com\/#organization","name":"Faisal Khan LLC","url":"https:\/\/faisalkhan.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/","url":"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png","contentUrl":"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png","width":285,"height":80,"caption":"Faisal Khan LLC"},"image":{"@id":"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/faisalkhanpaymentconsultant","https:\/\/x.com\/FaisalKhanllc","https:\/\/www.linkedin.com\/company\/faisal-khan-llc"]}]}},"featured_image_src":null,"featured_image_src_square":null,"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"gb-block-post-grid-landscape":false,"gb-block-post-grid-square":false,"yarpp-thumbnail":false},"uagb_author_info":{"display_name":"Faisal Khan","author_link":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"uagb_comment_info":0,"uagb_excerpt":"Definition A bank-owned For Benefit Of (FBO) account is a type of financial account where funds are held by a financial institution but are designated for the benefit of another party. Essentially, the bank holds the account in its name on behalf of another entity or individuals. These accounts are used to segregate customers&#8217; funds&hellip;","_links":{"self":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/11055"}],"collection":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/comments?post=11055"}],"version-history":[{"count":2,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/11055\/revisions"}],"predecessor-version":[{"id":11792,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/11055\/revisions\/11792"}],"up":[{"embeddable":true,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/3611"}],"wp:attachment":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/media?parent=11055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}