The business of banking has just received yet another compliance requirement: the Customer Identification Program. The new CIP isn't really new.
Mary Beth Guard, guru of BankersOnline.com, recently gave Michigan compliance managers some tips about things to include in the CIP.
As part of our BSA Policy, I wrote a new customer information procedure guideline. My understanding is that we also need a separate Policy, but someone in our deposit compliance area disagrees. What exactly do we need policywise for BSA?
When does our CIP program, under the USA PATRIOT Act have to be in place?
W9 certifications are signed under penalty of perjury. Is it appropriate to prefill the fields for backup withholding and "I am a U.S. person" with an X to expedite completion of the form, or should those boxes be filled in by the customer signing in his own hand (no keyboard required) the document? I think in most situations requiring a HUMAN SIGNATURE it is expected that the signer should know what they are signing. Then with that assumption, why do so many of them come in incomplete? The reason for the prefill is to keep them from being incomplete. But if the signer didn't read it in the first place when it was blank and left it blank, are we to assume that they read it and agreed with it when they signed it then? Is there something specific in CIP, US PATRIOT ACT, BSA, IRS or the BIBLE that addresses this?
After writing a CIP policy (not yet approved by the BOD) only to have the final rules postponed, we decided to take a wait and see position before copying the drivers license for new accounts or putting any of our other requirements in place. Are we okay with this, or are we out of compliance?
I understand that it is not a violation of ECOA to require an ID and photocopy it at loan closing. However, also I understood that taking a photocopy of a picture ID for a loan file is considered "collecting monitoring information" which according to Section 202.13 of Reg B is allowed only for credit secured by a dwelling. Aren't we setting ourselves up for "discrimination in lending" by keeping pictures of those we approve and decline in loan files?