With the introduction of a new I-TIN mortgage product approaching, we are looking to ensure full compliance with AML/PATRIOT Act. I have been able to gather some useful guidelines and definitions through BSA research as well as the CIP section of the PATRIOT Act, but am looking for concrete guidance regarding compliance when consumers don't have a social security number. If anybody has knowledge on the matter or a reference from the mentioned regulations, sharing would be much appreciated!

Under the CIP a SSN is an identification number. The Exam states "An identification number for a U.S. person is a taxpayer identification number (TIN) (or evidence of an application for one), and an identification number for a non-U.S. person is one or more of the following: a TIN; a passport number and country of issuance; an alien identification card number; or a number and country of issuance of any other unexpired government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard. TIN is defined by section 6109 of the Internal Revenue Code of 1986 (26 USC 6109) and the IRS regulations implementing that section (e.g., Social Security number (SSN), individual taxpayer identification number (ITIN), or employer identification number)."

An ITIN is an acceptable identification number.

Not CIP related, but something to consider...the CRAs will not allow ITINs to be reported for credit purposes. Per the CDIA manual, ITINs should not be reported because they "do not prove identity outside the tax system and should not be offered or accepted as identification for non-tax purposes". Our shop has run into operational challenges with this, as our core system cannot prevent the number from being submitted to the CRAs unless we completely remove it from our system. Obviously, it needs to be in our system for CIP and identification purposes. We are also seeing the CRAs deleting ITINs from the credit file once we submit, which leads to merged files and disputes from our customers.

You should be able to suppress CRA reporting in your core system on individual loans.

We can suppress the reporting; however, the CDIA has advised us to report all nines in the Tax ID field to allow the borrower's history to report to the CRAs so that a credit profile is built for the borrower. Obviously, since we have the ITIN in the Tax ID field, we have no way of reporting all nines in this field. If we suppress reporting, the borrower is unhappy and files a dispute because no history has been reporting.

The customer may be unhappy, but there is no requirement to report to a CRA. If your CRAs won't accept ITINs, then you can't report it. My choice would be either not report the loan, or report the ITIN to the CRA. I don't have an option to put 9s on the SSN line on the loan for CRA extract, but not on the CIP line. The credit bureaus need to start taking it.