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August 6
Part I
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer

August 12
A to Z of Reg E;
Andy Zavoina

August 13
Part II
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer

August 14
Advanced Business Accounts - Complicated Issues and Simple Solutions;
Deborah Crawford

August 19
HMDA - Coming Attractions;
Jack Holzknecht

August 20
Safe Deposit Regulatory Compliance & Legal Issues;
Dave McGuinn



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#1890277 - 01/24/14 03:26 PM Copy of Drivers License required?
JWills Offline
Platinum Poster

Registered: 05/28/13
Posts: 828
Loc: The Mitten State
Can anyone tell me if a bank is required to keep a copy of a customers drivers license?
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BSA/AML/CIP/OFAC
#1890282 - 01/24/14 03:30 PM Re: Copy of Drivers License required? [Re: JWills]
ACBbank Online
Power Poster

Registered: 07/26/06
Posts: 2515
Loc: New York City
From the BSA/AML Examination Manual:

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

Just make note that your internal procedure may require it.
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#1890287 - 01/24/14 03:34 PM Re: Copy of Drivers License required? [Re: JWills]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49449
Loc: Galveston, TX
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.
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#1890297 - 01/24/14 03:42 PM Re: Copy of Drivers License required? [Re: JWills]
JWills Offline
Platinum Poster

Registered: 05/28/13
Posts: 828
Loc: The Mitten State
We do the state of issuance and the drivers license number.
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Nonsense wakes up the brain cells.

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#1890307 - 01/24/14 03:54 PM Re: Copy of Drivers License required? [Re: JWills]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49449
Loc: Galveston, TX
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;
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#1890315 - 01/24/14 04:04 PM Re: Copy of Drivers License required? [Re: JWills]
JWills Offline
Platinum Poster

Registered: 05/28/13
Posts: 828
Loc: The Mitten State
We have all but the expiration date-we will have to add that.
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Nonsense wakes up the brain cells.

--Dr. Seuss

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#1890325 - 01/24/14 04:13 PM Re: Copy of Drivers License required? [Re: JWills]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49449
Loc: Galveston, TX
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.
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#1890330 - 01/24/14 04:17 PM Re: Copy of Drivers License required? [Re: rlcarey]
JWills Offline
Platinum Poster

Registered: 05/28/13
Posts: 828
Loc: The Mitten State
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
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Nonsense wakes up the brain cells.

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#1890337 - 01/24/14 04:24 PM Re: Copy of Drivers License required? [Re: JWills]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49449
Loc: Galveston, TX
31 CFR Chapter X

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

Look under Recordkeeping
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The opinions expressed are my own, take them or leave them.

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#1890343 - 01/24/14 04:26 PM Re: Copy of Drivers License required? [Re: JWills]
JWills Offline
Platinum Poster

Registered: 05/28/13
Posts: 828
Loc: The Mitten State
Thanks Randy, found it.


Edited by JWills (01/24/14 04:35 PM)
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#1890551 - 01/27/14 10:37 AM Re: Copy of Drivers License required? [Re: JWills]
WIBanker91 Online
Junior Member

Registered: 11/23/11
Posts: 26
Loc: WI
You may also want to check state law regarding copying a Driver's license.

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#1890572 - 01/27/14 11:20 AM Re: Copy of Drivers License required? [Re: JWills]
Compliance Diva Offline
New Poster

Registered: 03/02/09
Posts: 10
Loc: Michigan
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.

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#1890582 - 01/27/14 11:34 AM Re: Copy of Drivers License required? [Re: JWills]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 17150
Loc: Another trip around the sun
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 customerís identity; however, the CIP regulation does not require it. A bankís 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 driverís 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
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