I have a potential customer that is an LLC wanting to open an deposit account. We requested our standard required information, which revealed that it is a single member LLC, whose sole member is an LP. We have therefore asked for the standard identification on the LP, but are getting blow back from the customer not understanding why. I am drafting a letter to explain so that the person we are dealing with will have something from us in writing to take to her CEO. I just do not see how we can know who has the authority to grant signature authority on an account of the LLC if we do not know who within the LP can grant it. Any thoughts?

My thoughts are your thoughts. You have to "dig down" to find out who has authority. I imagine any financial institution would request the same information.

It is not just a matter of CIP but of operational risk.

Stand your ground. We do the same thing on Single-Member LLCs' obtaining identity information on the ultimate controlling entity....except we don't typically draft up a letter of explanation.