In regards to the CIP program, what information to we need to obtain when we are making loans. If you could share what your institution does or any information that would be helpful, I would really appreciate it. Thanks ahead of time.

We request the same information for CIP on all accounts, DDA, SAV, TD,Trust, and Loans.
Name, Address, Occupation/Employer, Social Security number or Tax ID, Date of Birth Two forms of ID. We also require type of account and use of account.

I stumbled across this yesterday. It may be a little overkill, but it is one bank's version of a form to obtain indentification information from borrowers.

CIP Form

We require two forms of "documentary" I.D. and perform "non-documentary" verification during the underwriting process, i.e., checking credit report to information provided on the application, address, phone, employment, etc. We use a form to record the information, but it is a much simpler form than the one Retread shows a link to.

Can you point me in to the section in the USA Patriot Act that says to take this id for loans as well as dda? We have commercial loan officers who do not want to take ODL info on their loan customers. Then they want deposit accounts and say they are an existing customer. I need to quote from the Act.

Look at pages 16-17: 326Final Rule

Definitions of Account and of Customer -no exemption of commercial lending customers!

Bank Secrecy Regulation:

Sec. 103.121 Customer Identification Programs for banks, savings associations, credit unions, and certain non-Federally regulated banks.

(a) Definitions. For purposes of this section:
(1)(i) Account means a formal banking relationship established to provide or engage in services, dealings, or other financial transactions including a deposit account, a transaction or asset account, a credit account, or other extension of credit. Account also includes a relationship established to provide a safety deposit box or other safekeeping services, or cash management, custodian, and trust services.

(3) (i) Customer means:
(A) A person that opens a new account; and
(B) An individual who opens a new account for:
(1) An individual who lacks legal capacity, such as a minor; or
(2) An entity that is not a legal person, such as a civic club.
(ii) Customer does not include:
(A) A financial institution regulated by a Federal functional regulator or a bank regulated by a state bank regulator;
(B) A person described in § 103.22(d)(2)(ii)-(iv); or
(C) A person that has an existing account with the bank, provided that the bank has a reasonable belief that it knows the true identity of the person.

Linda -

The Patriot Act does not require the collection of drivers license information for any customer. It only says that you must collect the required 4 pieces of identifying information, which includes a governement issued ID numer. For a US citizens, individual, this would be a social security number. Then, it further states that you must verify this information through documentary and/or non-documentary methods. The do strongly recommend, however, that you use at least one document that is current/un-expired and contains a photograph or similar safeguard to perform this verification. This, and the fact that you can verify at least 3 of the 4 pieces of the identifying information you are required to collect (name, addr and birthday) on one document, is why most banks prefer to collect a drivers license as their primary verification document. But, if your lender does not want to use a d/l to verify their information, they can verify the information they have collected using other documents that your bank has deemed acceptable. Or, if the relationship and your bank policy warrants, they can use non-documentary verification methods.

As far as application of USPA/CIP to loans, you need to look to the definition of "account" in the law. An account does include a lending relationship as well as deposits. If your lender is not applying CIP to new loan customers after Oct 1, 2003, you would be in violation. There aren't any exceptions or alternatives to that requirement.

Good Luck!