Is this a true statement based on the reg for additional verification?
If a financial institution is unable to verify the identity of persons other than an individual, such as a corporation or other legal entity, using documentary or non-documentary methods, it must either:
-Choose not to open the account; or
-Collect and verify identifying information on individuals with authority or control over the account, such as signatories
Reg:
(C) Additional verification for certain customers. The CIP must address situations where, based on the bank's risk assessment of a new account opened by a customer that is not an individual, the bank will obtain information about individuals with authority or control over such account, including signatories, in order to verify the customer's identity. This verification method applies only when the bank cannot verify the customer’s true identity using the verification methods described in paragraphs (b)(2)(ii)(A) and (B) of this section.
I say no, because the verification of signatories is supposed to be an additional risk-based method along with whatever documentary/non-documentary methods the bank has established. To only have signatory verification who be a violation of the reg?