Thread Options
#2038376 - 09/14/15 06:26 PM Section 326 Customer Notices
Cedar Point Guy Offline
New Poster
Joined: Aug 2015
Posts: 9
Hi All,

1)For the section 326 customer notices (CIP notices) is the bank required to have one at each account opening desk? For both loans and deposit accounts?
2) Is the section 326 customer notice required for commercial loan desk personnel?
3) Is the section 326 Customer notice required to be at the teller line?
4) Would a bank be in compliance if they have one lobby notice that meets the requirements of Section 326 and not have the notices at the account opening desk?

Return to Top
BSA/AML/CIP/OFAC Forum
#2038379 - 09/14/15 06:33 PM Re: Section 326 Customer Notices Cedar Point Guy
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
For loans, it is pretty common to include the disclosure in the loan doc package. They are not a customer until then. Often it is also in the early disclosure package for consumer purpose loans.

It should be on every desk so that the customer sees it or hand it to them as you start to take the application. How many people coming in stop and read signs on the wall!?
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#2038400 - 09/14/15 07:43 PM Re: Section 326 Customer Notices Cedar Point Guy
bcompliance Offline
Diamond Poster
Joined: Sep 2014
Posts: 1,244
We have the notice on the desk of every person who would be opening an account and in front of each teller window (they also open accounts).

From the 2014 FFIEC Exam Manual on page 51:

"Adequate Customer Notice
The CIP must include procedures for providing customers with adequate notice that the bank is requesting information to verify their identities. The notice must generally describe the bank’s identification requirements and be provided in a manner that is reasonably designed to allow a customer to view it or otherwise receive the notice before the account is opened. Examples include posting the notice in the lobby, on a Web site, or within loan application documents. Sample language is provided in the regulation:"
_________________________
CRCM, CAMS

Return to Top
#2038546 - 09/15/15 04:04 PM Re: Section 326 Customer Notices Cedar Point Guy
Cedar Point Guy Offline
New Poster
Joined: Aug 2015
Posts: 9
Is it required to have the notice for commercial loan desk? Should the notice be on the commercial loan officers desk that actually open commercial loans?

Return to Top
#2038557 - 09/15/15 04:29 PM Re: Section 326 Customer Notices Cedar Point Guy
thomasj Offline
Power Poster
Joined: Mar 2001
Posts: 5,063
Pennsylvania
We thought we were covered by having a main lobby sign and signs at the desks of account opening personnel, until an auditor asked if we ever opened account relationships for persons who are not present (individuals added to accounts who are not local, customers who become customer's through indirect loan relationships, etc). Since they are not in the office, they don't see the notices. We added the notices to our signature cards and indirect loan applications to cover those bases.
_________________________
Knowledge is knowing what to say. Wisdom is knowing when to say it.

Return to Top
#2038625 - 09/15/15 07:49 PM Re: Section 326 Customer Notices Cedar Point Guy
Ted Dreyer Offline
Diamond Poster
Ted Dreyer
Joined: Apr 2001
Posts: 2,245
It doesn't have to be in any specific place. The standard was quoted above, it must be "provided in a manner that is reasonably designed to allow a customer to view it or otherwise receive the notice before the account is opened". So, you need to determine whether you have it in a place (or places) that every customer will see it before the account is opened. That might be a tent card on the desk, but only if every customer will be at one of those desks. If you open accounts by mail/phone/internet, you need to plan fro those situations as well.

Return to Top
#2039835 - 09/22/15 02:41 PM Re: Section 326 Customer Notices Kathleen O. Blanchard
AnnRoy Offline
Platinum Poster
AnnRoy
Joined: Jun 2002
Posts: 771
South
I've seen the notice/disclosure in the loan doc package, specifically our mortgage loan doc packages. But our mortgage loan "folks" are requiring the applicant to sign acknowledging they've read and received a copy their CIP notice (USA PATRIOT ACT Important Information About Procedures for Opening a New Account).

Per review of the CIP overview in the BSA/AML exam manual, a signature is not required????? If I'm correct, are we in violation of requiring a signature? If the applicant doesn't sign this notice, our loan folks will not process the loan until it's signed.
_________________________
CAMS

Return to Top
#2039837 - 09/22/15 02:51 PM Re: Section 326 Customer Notices Cedar Point Guy
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,773
You are here
Nope not required.


If the applicant doesn't sign this notice, our loan folks will not process the loan until it's signed

This could be an issue.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#2039860 - 09/22/15 03:28 PM Re: Section 326 Customer Notices Cedar Point Guy
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,641
Cape Cod
On what are your "loan folks" basing their intransigence? Is it department policy? Something an investor dreamed up to make life miserable for the creditors it buys from? If there's no policy requirement, it sounds like one or more of those "loan folks" needs to lighten up and realize there is no reason to inflict the signature requirement upon themselves. It's simply ridiculous -- even more ridiculous than several of the other applicant signature requirements that some creditors have foist upon themselves.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2039861 - 09/22/15 03:28 PM Re: Section 326 Customer Notices Cedar Point Guy
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,176
New York City
As Ed indicated, you're not required to obtain a signature demonstrating that the customer acknowledged the CIP Notice. That aside, you can require their signature on the document as part of the loan closing process. One of my old shops had the same requirement. You're at the table and if you want your money, you're going to sign. Period.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top

Moderator:  Andy_Z