Our (pre-2003) customer is now incapacitated and a permanent resident in a nursing facility. His brother has POA over all of his affairs.
His brother wants to open an account to use to pay his incapacitated brother's expenses.

How do we handle CIP in relation to the POA brother when we can not get ID documents on the incapacitated brother?
Is this an "Authority & Control" situiation which would allow us to CIP the POA instead of the incapacitated brother?

The CIP FAQ says:
1. Who is the “customer” when an account is opened by an individual who has power-of- attorney for a competent person who is the named owner of the account?
The CIP rule provides that a “customer” generally is “a person that opens a new account.” 31 C.F.R. § 103.121(a)(3)(i)(A). When an account is opened by an individual who has power-of-attorney for a competent person, the individual with a power-of-attorney is merely an agent acting on behalf of the person that opens the account. Therefore, the “customer” will be the named owner of the account rather than the individual with a power-of-attorney over the account. By contrast, an individual with power-of-attorney will be the “customer” if the account is opened for a person who lacks legal capacity. 31 C.F.R. § 103.121(a)(3)(i)(B)(1). (January 2004)

"Legal capacity"... The POA now has legal autority. Is this generally the same for THIS situation?

I would think the attorney-in-fact would be your customer in this case since his brother is incapacitated. That's the kind of situation addressed by the FAQ.

I guess what throws me off is the part that says: "person who lacks legal capacity"
The FAQ generally refers to an example of this being a minor.
I can not find anywhere it addresses those who are facilitated due to mental or physical issues and may simply not possess regularly accepted IDs, etc... and may have parents or family acting as their legal agent.

Does anyone know if and where this might be addressed?
Thank you

The question really is whether the nursing home resident is physically incapable of opening the account (can't make it to the bank) or lacks legal capacity.

But, if he is an existing customer and you know who he is, why would you have to go through CIP again? Even if it was pre-2003, you've obviously banked him a long time and are 'reasonably sure he is who he says'?

Of course you're right, John. I wasn't thinking about he possiblility that the nursing home resident was physically incapacitated; I assumed he was mentally unable to make his own decisions. I thought I had learned that lesson about assuming, but I guess not.

Existing Customer...

Early on (2003) when creating the bank’s CIP policy our bank decided to CIP everyone... (new or not).
Our policy does not currently address situations of existing customers.
Whether that was a mistake on managements part or not is irrelevant at this point.

We are stuck with what we have…

This customer is not able to physically come to the bank and his mental capacity is in question (per the brother). However, that could only be verified by examination of a qualified physician.
I don’t think CIP in this situation, would require such in depth analysis.
Our policy does address the account type involve and the elderly/nursing home resident, both (in this situation) are “low risk”.

So, if we CIP the POA and attempt to obtain a letter from the nursing home which verifies the customer as a resident, would that suffice?