Skip to content
BOL Conferences Top Gun 23
Thread Options
#2156761 - 12/11/17 04:01 PM Where does it say?
Just Jean Offline
Platinum Poster
Joined: Feb 2002
Posts: 582
USA
Trying to lay my hands on the reference for statute/regulation from the Patriot Act that says we have to verify address. Irate professor is on his way to the bank.

Return to Top
BSA/AML/CIP/OFAC Forum
#2156765 - 12/11/17 04:19 PM Re: Where does it say? Just Jean
fmissle Offline
Diamond Poster
Joined: Jul 2007
Posts: 1,008
Pac NW
I'm not sure why people get so upset with banks on this. Tell him to talk to his congressman.

Section 326.
SEC. 326. VERIFICATION OF IDENTIFICATION.
https://www.gpo.gov/fdsys/pkg/BILLS-107hr3162enr/pdf/BILLS-107hr3162enr.pdf

Quote:
(a) IN GENERAL.—Section 5318 of title 31, United States Code,
as amended by this title, is amended by adding at the end the
following:
‘‘(l) IDENTIFICATION AND VERIFICATION OF ACCOUNTHOLDERS.—
‘‘(1) IN GENERAL.—Subject to the requirements of this subsection,
the Secretary of the Treasury shall prescribe regulations
setting forth the minimum standards for financial institutions
and their customers regarding the identity of the customer
that shall apply in connection with the opening of an account
at a financial institution.
‘‘(2) MINIMUM REQUIREMENTS.—The regulations shall, at
a minimum, require financial institutions to implement, and
customers (after being given adequate notice) to comply with,
reasonable procedures for—
‘‘(A) verifying the identity of any person seeking to
open an account to the extent reasonable and practicable;
‘‘(B) maintaining records of the information used to
verify a person’s identity, including name, address, and
other identifying information; and
‘‘(C) consulting lists of known or suspected terrorists
or terrorist organizations provided to the financial institution
by any government agency to determine whether a
person seeking to open an account appears on any such
list.

Return to Top
#2156795 - 12/11/17 06:30 PM Re: Where does it say? fmissle
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Professors like to parse words. Here's the regulation that interprets part 326 of the statute. It says you must obtain the address and verify it.
_________________________
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
#2156898 - 12/12/17 03:56 PM Re: Where does it say? Just Jean
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,659
Pulling people out of the ditc...
Quote:
Irate professor is on his way to the bank.


have the cashier's check with his outstanding balance available for him when he arrives with his irateness, let him take his ire elsewhere
_________________________
Providing alternative truths since the invention of time

Return to Top
#2156905 - 12/12/17 04:12 PM Re: Where does it say? Just Jean
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,036
Cape Cod
Compliance officers (and former compliance officers) also like to parse words, especially words in regulations.

The regulation (cited by Ken, above) does require that the financial institution obtain the new customer's name, identifying number (TIN for U.S. persons), a business or residential street address, and, for individuals, their date of birth. the regulation then requires the FI to verify the identity of the customer, using the three or four bits of information I just listed, using documents, non-documentary methods, or a combination of documentary and non-documentary methods. It also says "The procedures must enable the bank to form a reasonable belief that it knows the true identity of each customer." It does not say that each of the three or four elements of information received from the customer must individually be verified. It says that you take the information, run a procedure against it, and decide whether you know the customer's true identity.

However, if you cannot verify each of those elements of information, how can you say you have verified the customer's identity sufficiently to form a reasonable belief that you know his/her/its true identity?

The address is the least reliable of the three bits of information for verification of identity, because it's the one piece of information that can change. That said, you must obtain it and you have to at least reconcile the address provided by the customer with some document or non-documentary source. Reconciliation of the address may require that you get additional documentation if the customer has recently relocated to the address the customer provided. In fact, you may (if your policy permits) accept the street address of a friend or family member if the customer doesn't have a permanent street address or is serving in the military overseas. And there is an exception for individuals who have legitimate reasons to conceal their actual street address (victims of domestic abuse, for example), who have a bona fide alternative mailing address under state-sponsored protective programs.

I've satisfied my urge to nitpick. We will now return to our regular programming.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z