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#2150952 - 10/24/17 03:14 PM Customer Verification - Sole Props
jhoch Offline
Member
Joined: Nov 2014
Posts: 66
Looking for guidance on using Drivers License to verify the identity of Sole Props when no other documentation available.

How about if there is an SOS filing on the Sole Prop? Is that required or would a DL still suffice?

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#2150953 - 10/24/17 03:25 PM Re: Customer Verification - Sole Props jhoch
Daisy Doodle Offline
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Joined: Feb 2014
Posts: 1,030
Southern U.S.
A sole prop is not a separate entity from the owner, so no need to document it's existence. Document the owner's existence. If they use an assumed name, as many do, your policy might require an assumed name certificate. Ours does.

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#2150962 - 10/24/17 04:25 PM Re: Customer Verification - Sole Props jhoch
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,561
The Country
Our program runs similar to Daisy. ID the owner and if the name of the sole prop does not include the individuals legal name we require an Assumed Business Name certificate from the SOS.
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#2150984 - 10/24/17 06:04 PM Re: Customer Verification - Sole Props jhoch
Elwood P. Dowd Offline
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Posts: 21,939
Next to Harvey
You verify the identity of the individual to satisfy the CIP regulation.

You verify the existence of the business because you are a good banker and realize that you are going to guarantee the endorsement on every check deposited into the account; simple prudence would drive you to verify that the individual had the legal right to use the business name.
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#2151043 - 10/24/17 08:46 PM Re: Customer Verification - Sole Props jhoch
kw004h Offline
100 Club
Joined: Nov 2009
Posts: 219
Chicagoland, IL
You verify the identity of the Sole Proprietor (the human) with the Driver's License.

The only way to verify that the human in front of you has claim on the Business Name is to check with the Secretary of State and/or the county clerk (depending on your rules in your state). If you're accepting checks payable to a Business Name, I'd want to verify.
Last edited by kw004h; 10/24/17 08:47 PM.
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#2151160 - 10/25/17 07:28 PM Re: Customer Verification - Sole Props jhoch
Just Jean Offline
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Joined: Feb 2002
Posts: 582
USA
Recommendations for locales that don't require registration of any type for sole proprietorships?

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#2151183 - 10/25/17 08:33 PM Re: Customer Verification - Sole Props Just Jean
Princess Romeo Offline

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Joined: Jun 2001
Posts: 8,272
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As noted above, this is not a CIP issue since a Sole Prop is not a distinct entity - but rather an "aka" of an individual. Once you have performed CIP on the individual, your regulatory obligation is done. Any further verification would be a matter of your own bank policy and prudent banking practices.

If you live in a state that does not require a fictitious business name filing, then you should check with legal counsel that is familiar with banking issues as to a best practice.

FYI - here is a state-by-state list of filing requirements:
http://dbafilingonline.com/dba-by-state/
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#2151265 - 10/26/17 04:01 PM Re: Customer Verification - Sole Props jhoch
RockChucker, CAMS Offline
Diamond Poster
Joined: Jul 2013
Posts: 1,561
The Country
Nice website Princess! Thanks for the resource.
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A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-David Brinkley

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