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#2056251 - 12/30/15 06:14 PM BSA Reliance
Daisy Doodle Offline
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We contract with a provider for non-deposit investment and insurance products, but I'm told by my higher ups we don't use 'reliance' here because our employees are dual employees with the provider and the accounts are not ours. And nothing in the contract addresses CIP or OFAC. We do have to input info from ID and to 'check a box' that certifies we physically reveiwed the ID, but that's it. Essentially I was under the impression that if the bank earns revenue from the relationship we cannot simply say we are not responsible, but I've not worked at a bank that had the 'dual employee' thing. Comments?

Also, if we are a reseller of stored value cards for a provider, and they handle pretty much everything BSA, does everyone consider that reliance or not? They are not our cards, and the purchases may very well not be a customer either.

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#2056514 - 01/04/16 04:05 PM Re: BSA Reliance Daisy Doodle
Daisy Doodle Offline
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No thoughts on this?

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#2056540 - 01/04/16 05:19 PM Re: BSA Reliance Daisy Doodle
rlcarey Offline
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Who's customers are they? Dual employees have nothing to do with the issue.
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#2056564 - 01/04/16 07:12 PM Re: BSA Reliance Daisy Doodle
Daisy Doodle Offline
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I'm sure quite a few, if not most, of them are mutual customers, but the bank's position is that they are the investment companies customers boarded by their own employees (in their dual capacity). They cited the 'dual employee' thing to me as a reason why we didn't need CIP/OFAC included in the contract language. It didn't make sense to me either, since the customers are walking into a bank and investment department loaded down with our signage and logo, and not to mention many are referred by our branches, but I'm told they have won the point with examiners and auditors so far. At my last bank, our NDIP contract had the reliance language included, so I've not encountered this before.

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#2056572 - 01/04/16 07:30 PM Re: BSA Reliance Daisy Doodle
ACBbank Offline
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DD - I'm not sure that I follow your situation. As Randy indicated dual employees have nothing to do with the situation. If you're providing accounts, as defined by the Final CIP, then either you or someone else need to comply with the Final CIP. If you're relying on a service provider to comply with the Final CIP on your behalf, then your shops and their shops roles and duties should be detailed in an executed contract.
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#2056603 - 01/04/16 08:42 PM Re: BSA Reliance Daisy Doodle
rlcarey Offline
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If they are opening accounts for the NDIP company, why do you care what their account opening process is.

If they are opening accounts for the bank, they need to follow your board approved CIP.
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#2056641 - 01/04/16 10:09 PM Re: BSA Reliance Daisy Doodle
Daisy Doodle Offline
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So...below is the definition of 'account' under 1020. NDIP is not specifically addressed here or in the FAQ's that I could find. But am I correct in saying that this does not meet the definition of 'account' for the bank. Only for the NDIP, so we are not responsible? I think my confusion comes from the fact that at my last bank, everything was spelled out in our contract. What we did to provide CIP to the NDIP, what they did afterward. Here, our agreement is silent on all of it. So..my previous NDIP provider went beyond the call of duty on this?

(a) Account. For purposes of ยง1020.220:

(1) Account means a formal banking relationship established to provide or engage in services, dealings, or other financial transactions including a deposit account, a transaction or asset account, a credit account, or other extension of credit. Account also includes a relationship established to provide a safety deposit box or other safekeeping services, or cash management, custodian, and trust services.

(2) Account does not include:

(i) A product or service where a formal banking relationship is not established with a person, such as check-cashing, wire transfer, or sale of a check or money order;

(ii) An account that the bank acquires through an acquisition, merger, purchase of assets, or assumption of liabilities; or

(iii) An account opened for the purpose of participating in an employee benefit plan established under the Employee Retirement Income Security Act of 1974.

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#2056671 - 01/05/16 01:55 AM Re: BSA Reliance Daisy Doodle
rlcarey Offline
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Are the accounts being opened carried on the books of the bank or the other company? If the other company, they are not accounts of the bank.
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#2056712 - 01/05/16 02:46 PM Re: BSA Reliance Daisy Doodle
Daisy Doodle Offline
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Southern U.S.
Okay, well that is easy enough. Thank you all.

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