USA PATRIOT Act, Safe Deposit Policy, and the Deputy Answer by: John Burnett, Dave McGuinn and Ken Golliher BOL Guru
Question: We are updating our Safe Deposit policy to reflect the USA PATRIOT Act. I would like to know what you think the procedures for a deputy should be as far as verification of the identification. Should we treat a deputy the same way we would handle adding a signature to an account?
Answer by John Burnett BIO AND CONTACT INFO
A safe deposit deputy is really a special kind of agent, just as an attorney-in-fact (or authorized signer) is.
Take into account the risk profile for safe deposit box deputy appointments and the fact that some deputies won't be physically at the bank to show ID. Then write your rules accordingly.
Answer by Dave McGuinn BIO AND CONTACT INFO
It is my understanding that the current Act does not specify any requirements relating to safe deposit box renters or deputies.
Even without this requirement, I recommend that proper ID should be obtained from the person being appointed as a Deputy. This is necessary because this deputy's signature must be verified when he or she requests access to the renter's box.
I also recommend that deputy appointments only be made at your safe deposit area, not outside your facility. All current box renters should sign and appoint this deputy on their lease agreement.
Deputy appointments are very similar to Power of Attorney documents and should be handled with great care to minimize your liability.
Answer by Ken Golliher BIO AND CONTACT INFO
The proposed CIP regulations were drafted very carefully so as not to exclude any ongoing customer relationship. They are as applicable to safe deposit as to lending and deposit relationships.
Wait for the final regulations before you crystallize your program as they may make a distinction about who is a "signatory" on an account. However, under the proposal, you would have the same identification requirements for everyone who signs.
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