One 326 Problem

Even while we are studying, adapting, and applying Section 326 for identifying our customers, the battle continues in Washington over the matricula consular cards.

Matricula consular cards are identity cards similar in size and format to our drivers licenses. They are issued by Mexican consulate offices to Mexican immigrants who can produce a birth certificate from Mexico. The card allows travel back to a person's homeland, costs $28 and, once issued, is valid for five years.

Valid? Or Not?
The problem is, do we consider the matricula consular card to be valid identification acceptable to open an account? BANKERS' HOTLINE addressed this issue back in January of this year (Vol XII, No. 10) and then had to print a correction about the article in the next issue. Section 103.121(A)Verification through documents. Part (1) reads: "?For an individual - unexpired government-issued identification evidencing nationality or residence and bearing a photograph or similar safeguard, such as a driver's license or passport?etc."

Not U.S.
I had to print a correction in February because when I wrote about it originally I had written ' ... unexpired U.S. government-issued identification.' I was quickly corrected by our advisor in D.C. that the intent was any government issued identification, not just the United States. So under the terms of the new requirements, the matricula consular could be considered acceptable.

Some States Accept?
States such as California and Florida, where there are large Hispanic populations, are widely accepting the cards.

?Some Don't
On the other hand, Colorado just joined New York in refusing to recognize the cards as identification. Lawmakers in Colorado who supported the measure said the cards encourage illegal immigration and could make it easier for terrorists to get identification. For necessary identification documents, such as those to open bank account, immigrants will have to register with federal and state agencies.

Action Proposed in Congress
Rep. Tom Tancredo (R-CO) and other members of Congress have now introduced legislation concerning these identity cards. Tancredo said the problem could get worse. He said other nations - including Guatemala, the Dominican Republic, and Poland - are also considering issuing such cards via their consulates and embassies in the U.S.

"Are we ready to cope with the potential security issued posed by 'consular ID cards' issued by the governments of Iran, Saudi Arabia, Pakistan, Syria, Egypt, or China?" said the Colorado Republican. "Regarding the Treasury regulations, let me add that I realize that the banking community looks at illegal aliens and sees dollar signs, but they are placing profits ahead of patriotism and citizenship. This must end. It is the job of the federal government to view a broader range of circumstances and interests in formulating guidelines and regulations on banking activity."

Which Way Will You Go?
And just where, dear reader, does this leave us? If we accept the cards, are we unpatriotic? If we don't, are we passing up legitimate business? Industry watchers do not expect anything to come of the legislation proposed. Indeed, what has been proposed to Congress by the bill sponsors is doing away with 326! Fat chance! No, the decision is going to be dropped on each institution to do its own risk assessment.

And no matter which way your financial institution decides to go on this issue, to accept the cards or not to accept them, the fact of the matter is the responsibility falls right smack-dab on the new accounts person.

Again.

Copyright © 2003 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 13, No. 3, 6/03