Skip to content
BOL Conferences Top Gun 23
Thread Options
#2042540 - 10/05/15 05:59 PM CIP for publicly-traded company
Compli(cated) Offline
100 Club
Joined: Mar 2011
Posts: 185
Wisconsin
I know that publicly-traded companies are outside the definition of "Customer" so CIP requirements do not apply. But it feels strange to not collect any information for the account signers (SSN, DL info, etc.). How are you handling these?
_________________________
Opinions are my own.
"I was gratified to be able to answer promptly. I said I don't know." - Mark Twain

Return to Top
BSA/AML/CIP/OFAC Forum
#2042559 - 10/05/15 06:30 PM Re: CIP for publicly-traded company Compli(cated)
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
Your policy should address your minimum standards for establishing the identity of any authorized signers for business/organization accounts (including those acting on behalf of CIP-exempt customers such as governments and publicly traded companies).

Looking beyond the requirements of CIP, two things I would consider essential, from an operational/risk management perspective are:
1- Sufficient information to ensure that you're dealing with the correct individual. This could be a photo ID to substantiate signatures, this could be personal information such as SSN and other data to validate not-in-person interactions. It could be both, plus more.
2- Sufficient information to establish the authority of the person(s) who are requesting and using the account. This could be whatever corporate documents, public records, etc. are available to you that designate the individual's authority to transact. It's not enough to know that McDonalds is publicly traded, you also need to know that Ronald McDonald has sufficient authority to open an account for McDonalds. (You also need to know that you're really dealing with Ronald McDonald, but we covered that in Step 1)

Return to Top
#2042572 - 10/05/15 06:50 PM Re: CIP for publicly-traded company Compli(cated)
Compli(cated) Offline
100 Club
Joined: Mar 2011
Posts: 185
Wisconsin
Thanks, Jac. We did get the corporate documents - to your point #2.

The company is just refusing to provide anything beyond the name and title for the signers. They offered notarized signatures of the signers and that is it so I am trying to decide which way we want to go on this - hence asking what is considered "normal" by others in industry.
_________________________
Opinions are my own.
"I was gratified to be able to answer promptly. I said I don't know." - Mark Twain

Return to Top
#2042617 - 10/05/15 08:03 PM Re: CIP for publicly-traded company Compli(cated)
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
This really isn't a CIP issue as far as the regulation is concerned. The regulation does not apply to a mere signatory on an entity's account whether the entity is publicly traded or not.

What you are actually trying to figure out is the wording in your CIP and whether you want to change it. Publicly traded companies and government entities are entitled to refuse to provide the information, but no more so than a closely held company or a bowling league. If they want to refuse, they can refuse. Any legal requirement applies to your bank, not the customer.

Your bank is entitled to refuse to open the account if you do not get the information you require whether you base your requirements on the law or your own opinion. Some do.

If your bank thinks getting the identifying information is necessary signatories for closely held corporations and LLCs, then it will struggle to figure out what difference it makes that the entity is publicly traded.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top

Moderator:  Andy_Z