Thread Options 
|
#121760 - 10/10/03 01:44 PM
Venting
|
10K Club
Joined: Sep 2002
Posts: 13,965
TN
|
I just got into a slightly heated discussion with the President of the bank. He's arguing about CIP regulations and wanting to make sure all of the other local banks are doing everything the same way we are. He said there has to be some leeway here and common sense. Sheesh!
_________________________
My Opinions Only
|
|
Return to Top
|
|
|
|
|
#121761 - 10/10/03 02:00 PM
Re: Venting
|
Power Poster
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
|
We do have some leeway. Using our risk assessment procedure, we can balance some procedures using documentary vs. nondocumentary ID, depending upon the type of product, delivery channel, etc. It is feasible that different product lines can have different procedures.
_________________________
Life without Jesus is like an unsharpened pencil - it has no point.
|
|
Return to Top
|
|
|
|
|
#121762 - 10/10/03 02:25 PM
Re: Venting
|
10K Club
Joined: Sep 2002
Posts: 13,965
TN
|
This was a checking account where the customer was going to be a signer. They live approximately 10 minutes away, but wasn't going to come into the bank. It is a checking account for Junior Achievement and he was stressing it was 'only Junior Achievement'.
_________________________
My Opinions Only
|
|
Return to Top
|
|
|
|
|
#121763 - 10/10/03 02:46 PM
Re: Venting
|
Platinum Poster
Joined: Feb 2002
Posts: 582
USA
|
Unfortunately you are not alone. Some just can't seem to realize that 9/11 changed everything.
|
|
Return to Top
|
|
|
|
|
#121765 - 10/10/03 03:16 PM
Re: Venting
|
10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
|
We need to understand where "these people" are coming from. Their focus is on the customer-bank relationship, and anything that makes that relationship (perhaps only in their minds) more difficult is a threat. They are particularly uncomfortable with the idea of a new regulation upsetting established customer relationship paradigms.
Your frustration ought to more accurately be focused on the law passed by Congress in a knee-jerk reaction to the horror of 9/11/01. §326 is a poor reaction to a difficult problem, and we are all stuck having to implement the fallout from it.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8
|
|
Return to Top
|
|
|
|
|
#121766 - 10/10/03 03:45 PM
Re: Venting
|
Diamond Poster
Joined: May 2001
Posts: 1,873
|
Quote:
We need to understand where "these people" are coming from. Their focus is on the customer-bank relationship, and anything that makes that relationship (perhaps only in their minds) more difficult is a threat. They are particularly uncomfortable with the idea of a new regulation upsetting established customer relationship paradigms.
Your frustration ought to more accurately be focused on the law passed by Congress in a knee-jerk reaction to the horror of 9/11/01. §326 is a poor reaction to a difficult problem, and we are all stuck having to implement the fallout from it.
This should be for another forum, however......
When the law came out my frustration was focused on the law itself, however, I had to adjust. I am sorry but I am going to disagree with you. I do understand where "these people" are coming from. (By "these people" I am referring to those in this location only, the other branch locations seem to have no problem). Perhaps it is not the same in your entity, however, here it is not the concern that this will dampen the customer relationship.....it is the fact that there is more work for the loan officer to do. That was made perfectly clear during yesterday's meeting.
I do sympathize with them. I know there are many things to remember but they are not having to do anything more than any other bank is having to do......After all, as we have heard so many times before, "I don't make the rules".
They have taken an already time consuming law and added stones along the path. This has only cause their walk to be more painful....
_________________________
Riding the waves of change.....2014
|
|
Return to Top
|
|
|
|
|
#121767 - 10/10/03 04:28 PM
Re: Venting
|
Platinum Poster
Joined: Jan 2003
Posts: 921
Down South, USA
|
Quote:
....... Your frustration ought to more accurately be focused on the law passed by Congress in a knee-jerk reaction to the horror of 9/11/01. ....
Unfortunately Congress is not the only party guilty of knee-jerk reactions. I am aware of several cases of British citizens legally in the US, as the spouses of British citizens who have work visas, but without work authorization themselves, and therefore without SSNs. These people are being told by banks "Sorry, no SSN, no bank account."
It sounds to me like either bad policy, or bad training, not making staff away of the cercumstances when a would-be account holder's application needs to be referred upwards for management consideration.
_________________________
This is my opinion; it is not legal advice, nor the view of my employer, and it may change tomorrow.
|
|
Return to Top
|
|
|
|
|
#121768 - 10/10/03 05:53 PM
Re: Venting
|
10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
|
I sympathize with your British friends, WT, and with persons from other countries with similar circumstances. It is unfortunate when a rule that provides for accommodations of such persons is implemented by an FI with an "either/or" mentality.
I predict that, as the "chickens come home to roost" on this CIP mess, many CIPs will be revised. Some will have to become more strict because of regulatory pressure; others will become less strict for competitive reasons.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8
|
|
Return to Top
|
|
|
|
|
#121769 - 10/10/03 06:20 PM
Re: Venting
|
Diamond Poster
Joined: Aug 2003
Posts: 1,357
A Grant Wood painting.
|
In a small shop such as ours- I am those people. I watch the bottom line. I concentrate on building profitable potentially long-term relationships with high net worth individuals. I am also taking the time to individually explain to some of these customers exactly what CIP requires and that we (the bank and the customer) can work to elimintate the financing of terrorist activities though banks. The point to get accross to "them" in your institution is that if they fully understand (to the extent it can be understood) 326, and they take the time to exlpain it WELL, they are actually taking steps towards a more solid relationship. You can not beat it. Learn it, teach it, and use it to your competitive advantage. It will get better. 
_________________________
The opinions expressed are what you can expect for the price paid.
|
|
Return to Top
|
|
|
|
|
#121771 - 10/10/03 07:23 PM
Re: Venting
|
Gold Star
Joined: Oct 2001
Posts: 313
Terminator Country
|
I understand the venting - we had some here also, but what I finally boiled it down to was (1) We are doing most of this anyway, now it's just in writing - this went to the group of people that were complaining about how much extra work this was and that the customer would be adversely affected. (2) We are selling it as a identity theft act. Terrorism isn't an immediate threat in most peoples life on a daily basis, but the threat from identity theft is. Once we convinced the front line people that this is how it should be sold to the customer, the squaking went away for the most part - still have a few loan officers, but come on, we've never be able to get throught to them in the past - why would this be any different! 
_________________________
The opinions are mine and do not necessarily reflect those of my employer.
|
|
Return to Top
|
|
|
|
|
#121772 - 10/10/03 07:35 PM
Re: Venting
|
Diamond Poster
Joined: Jul 2002
Posts: 1,678
United States
|
Michelle D, I also tried to make the point that CIP was not really much different than what we were doing before. Salespeople don't want to strain the customer-bank relationship, in that I agree with John. But it also needs to be pointed out that performance of the CIP is not a sales oriented task. Having to do a "little extra work" with CIP takes away from sales (money making) time. I think that is part of the problem as well.
_________________________
Opinions expressed are solely my own.
|
|
Return to Top
|
|
|
|
|
#121773 - 10/10/03 07:38 PM
Re: Venting
|
Gold Star
Joined: Oct 2001
Posts: 313
Terminator Country
|
I agree, that's why we are selling it as identity theft prevention - while not money making, good customer relations which can lead to more money making.
_________________________
The opinions are mine and do not necessarily reflect those of my employer.
|
|
Return to Top
|
|
|
|
|
#121774 - 10/10/03 08:35 PM
Re: Venting
|
Diamond Poster
Joined: Aug 2003
Posts: 1,357
A Grant Wood painting.
|
Good cutomer relations are money!
1) It is a lot cheaper to retain a customer than attract a new one.
2) The longer the relationship lasts, the less price senitive the customer is.
3) At some point, the customer just might mention your institution in favorable comment to someone else. Advertising does not get any better than that.
_________________________
The opinions expressed are what you can expect for the price paid.
|
|
Return to Top
|
|
|
|
|
|
Previous Thread
Index