We provide services non-account holders, as well as account holders. Our platforms require the creation of customer "folders" for all teller transactions. This means we capture CIP elements to create non-account holder folders to process those transactions.
As the USA PATRIOT Act requires the capturing of CIP elements for account opening only (as far as I understand), are we also required to post customer CIP notices at the teller stations as well for non-account holders? Logic would dictate that the answer is yes, because the same CIP information is being collected for both groups, and we practice our KYC and AML principles for both. (Non-account holders or "consumers" can launder money or finance terrorism just as easily, or more easily, as an account holder.)
However, the PATRIOT Act only requires the notices for account opening activities/locations. Technicality, I'm sure. But what is the right thing to do?
Is it a requirement to add/update our USA PATRIOT Act notice at CSR desks and disclosures for the CDD/Beneficial Ownership requirements, at account opening?
I attended Ken Golliher's seminar yesterday in Tulsa, it was very informative. I understood him to say that even if we don't do international transactions at this time, that he would still advise us to address Section 311 (Special Measures) of the USA PATRIOT Act in our policy/procedures. I was hoping someone
could weigh in on this for me.
What is the difference between Section 311 and Section 312 of the USA PATRIOT Act?
Attention Deficit Disorder
by Mary Beth Guard
Recently, I was diagnosed with CRADD:
I'm new to BankersOnline.com and also to compliance. I am trying to find some training materials relating to the USA Patriot Act that I could potentially use as a model for staff training at our bank. Can you point me in the right direction?
Is an adverse action notice required where an application meets all credit risk criteria and is credit approved, but is officially "conditionally approved", wherein the only condition not met is that the lender is unable to clear verification flags to meet USA PATRIOT Act requirements before opening the account?
According to the USA PATRIOT Act Section 326, a customer includes the person who opens an account for an entity that is not a legal person. How do you determine if the entity is legal? For example, we have a bowling league. Do they have to register with the state they do business in to become legal? Do they have to obtain a TIN to become legal, or both?
Question: What should we do to comply with Red Flags risk assessment requirements?