Copy of Drivers License required?

Posted By: JWills, CRCM

Copy of Drivers License required? - 01/24/14 08:26 PM

Can anyone tell me if a bank is required to keep a copy of a customers drivers license?
Posted By: ACBbank

Re: Copy of Drivers License required? - 01/24/14 08:30 PM

From the BSA/AML Examination Manual:

"A bank may keep photocopies of identifying documents that it uses to verify a customer’s identity; however, the CIP regulation does not require it."

Just make note that your internal procedure may require it.
Posted By: rlcarey

Re: Copy of Drivers License required? - 01/24/14 08:34 PM

You do however have to capture certain information and maintain that, such as the DL number and issue and expiration date whether you maintain a copy of the document or not.
Posted By: JWills, CRCM

Re: Copy of Drivers License required? - 01/24/14 08:42 PM

We do the state of issuance and the drivers license number.
Posted By: rlcarey

Re: Copy of Drivers License required? - 01/24/14 08:54 PM

That's not enough:

(i) Required records. At a minimum, the record must include:

(B) A description of any document that was relied on under paragraph (a)(2)(ii)(A) of this section noting the type of document, any identification number contained in the document, the place of issuance and, if any, the date of issuance and expiration date;
Posted By: JWills, CRCM

Re: Copy of Drivers License required? - 01/24/14 09:04 PM

We have all but the expiration date-we will have to add that.
Posted By: rlcarey

Re: Copy of Drivers License required? - 01/24/14 09:13 PM

Well, I guess you have a CIP violation on every one of these on file since October 2003.

So you capture the issuance date and not the expiration date? Last I checked, Michigan had both.
Posted By: JWills, CRCM

Re: Copy of Drivers License required? - 01/24/14 09:17 PM

Originally Posted By: rlcarey
That's not enough:

(i) Required records. At a minimum, the record must include:

(B) A description of any document that was relied on under paragraph (a)(2)(ii)(A) of this section noting the type of document, any identification number contained in the document, the place of issuance and, if any, the date of issuance and expiration date;


Where is this coming from Randy, I am trying to find it. Thank you
Posted By: rlcarey

Re: Copy of Drivers License required? - 01/24/14 09:24 PM

31 CFR Chapter X

§ 1020.220 Customer Identification Programs for banks, savings associations, credit unions, and certain non-Federally regulated banks.

Look under Recordkeeping
Posted By: JWills, CRCM

Re: Copy of Drivers License required? - 01/24/14 09:26 PM

Thanks Randy, found it.
Posted By: WIBanker91

Re: Copy of Drivers License required? - 01/27/14 03:37 PM

You may also want to check state law regarding copying a Driver's license.
Posted By: Compliance Diva

Re: Copy of Drivers License required? - 01/27/14 04:20 PM

Michigan Driver's Licenses did not have the issue date prior to the 2011 changes. We just started implementing this for MI DLs with an expiration date of 2015 or later. Any MI driver's licenses prior to that would not reflect an issue date so there would not be any violations. Our auditors and regulators that conduct our reviews are aware of this.
Posted By: Elwood P. Dowd

Re: Copy of Drivers License required? - 01/27/14 04:34 PM

Footnote 49, Page 56 (document, not pdf) BSA/AML Examination Manual:

A bank may keep photocopies of identifying documents that it uses to verify a customer’s identity; however, the CIP regulation does not require it. A bank’s verification procedures should be risk-based and, in certain situations, keeping copies of identifying documents may be warranted. In addition, a bank may have procedures to keep copies of the documents for other purposes, for example, to facilitate investigating potential fraud. However, if a bank does choose to retain photocopies of identifying documents, it should ensure that these photocopies are physically secured to adequately protect against possible identity theft. (These documents should be retained in accordance with the general recordkeeping requirements in 31 CFR 103.38.) Nonetheless, a bank should be mindful that it must not improperly use any documents containing a picture of an individual, such as a driver’s license, in connection with any aspect of a credit transaction. Refer to Frequently Asked Questions Related to Customer Identification Program Rules issued by FinCEN, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and Office of Thrift Supervision, April 28, 2005. Emphasis Supplied