You beat me to it.
TREASURY ANNOUNCES RESULTS OF PATRIOT ACT SECTION 326 NOTICE OF INQUIRY
This Department of Treasury press release may be viewed at:
http://www.treas.gov/press/releases/js743.htm The U.S. Treasury Department today announced the results of the notice
of inquiry published in the Federal Register July 1, 2003 requesting
additional information pertinent to the final rules published on May
9, 2003 implementing customer identification requirements for
financial institutions under Section 326 of the USA PATRIOT Act.
After reviewing over 34,000 comments, Treasury found that no new
information had been presented that had not been considered prior to
issuing the final rules. Accordingly, Treasury is recommending no
changes to the rules.
The July notice of inquiry sought comment on two specific issues: (1)
whether financial institutions should be required to retain
photocopies of identification documents used to verify customers’
identities; and (2) whether financial institutions should be
prohibited from accepting foreign government issued identification
documents other than passports as an acceptable form of
identification.
On the first issue, Treasury reaffirmed its original judgment that the
maintenance of photocopies in all cases did not provide a security
benefit that justified the additional record keeping burden. Further,
many identification documents contain security features that render
copies illegible. However, Treasury does note that in some cases
financial institutions, at their discretion, may find it prudent to
maintain photocopies of identification documents.
On the second issue, Treasury concluded that the risk-based approach
taken by the final rules, combined with the ability to notify
financial institutions if concerns arise with specific identification
documents, provide an ample mechanism to address any security
concerns.
Treasury expects all financial institutions covered by the customer
identification regulations to have their customer identification
program drafted and approved by October 1, 2003.
This additional comment period, which concluded July 31, represented
Treasury’s commitment to considering all relevant information in
implementing these regulations in a way that is fair to those
regulated and effective in properly identifying new customers.
A fact sheet providing further information on the notice of inquiry
and the original rule, as well as a copy of the notice that will
appear in the Federal Register announcing the results of the notice of
inquiry are attached.