Thread Options
#2189205 - 08/15/18 03:54 PM CIP - Verification through Documents
CGonzalez_13 Offline
New Poster
Joined: Jul 2017
Posts: 3
Can anyone direct me to where in the CIP rule/FAQs/guides it states that we cannot accept photocopies of IDs to verify a new customer's identity? (This question is not referring to beneficial ownership.)

Return to Top
BSA/AML/CIP/OFAC Forum
#2189212 - 08/15/18 04:12 PM Re: CIP - Verification through Documents CGonzalez_13
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
I don't know where it says that, but it must be the gospel. wink

From Question 4 on the April FAQ:

For example, a covered financial institution’s policies and procedures may state that the institution will accept photocopies of a driver’s license from the legal entity customer to verify the beneficial owner(s)’ identity if the beneficial owner is not
present, which is not permissible in the CIP rules. (Emphasis supplied)
_________________________
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
#2189234 - 08/15/18 05:42 PM Re: CIP - Verification through Documents Elwood P. Dowd
CGonzalez_13 Offline
New Poster
Joined: Jul 2017
Posts: 3
Thank you, Ken! Yes, that's the FAQ that triggered my question of where it states in the CIP rule that we cannot accept photocopies of ID to verify an individual's identity. I guess it's an implied rule within CIP.

Return to Top
#2189503 - 08/16/18 10:16 PM Re: CIP - Verification through Documents CGonzalez_13
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
I used the wink because there is no "sarcasm" font. I really do not know of any basis for FinCEN saying that banks cannot use a photocopy as a documentary source of verification for CIP.

The CIP regulation clearly allows each bank to identify what types of documentary verification it will accept. It does not say the bank must require the "original" document. The preamble to the original CIP regulation acknowledges that banks may not have the ability to examine the original documents and uses that observation as a springboard for suggesting that more than one form of verification should be used.

In my opinion, the statement in Q4 is completely baseless. FinCEN gets to say what the rules are, but it has to be consistent with what it has said in the past. (Hence, the indecision and turmoil over beneficial ownership and automatically renewable time deposits.)
_________________________
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
#2189898 - 08/21/18 02:51 PM Re: CIP - Verification through Documents CGonzalez_13
Crazy in Compliance Offline
Member
Joined: Mar 2016
Posts: 50
Ohio
Does anyone require consumer loan applicants (non-real estate applicants) to sign a W9 form stating the SSN they provided is true and accurate? We currently have our portfolio applicants sign one, but our indirect applicants do not. We do not require an applicant to provide a SSN card at account opening. The only verification of an SSN that may happen is when an applicant's credit report is pulled and it may or may not track for matched SSNs.
_________________________
It's better to be absolutely ridiculous than absolutely boring. . . Marilyn Monroe

Return to Top
#2189905 - 08/21/18 03:10 PM Re: CIP - Verification through Documents CGonzalez_13
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,649
Galveston, TX
Why would you require a W-9 on consumer loans. What purpose does it serve? The certification is meaningless as you have no information reporting responsibilities on consumer loans.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2190158 - 08/22/18 06:55 PM Re: CIP - Verification through Documents rlcarey
Crazy in Compliance Offline
Member
Joined: Mar 2016
Posts: 50
Ohio
I agree - it is something we "have always done". It didn't make sense to me either - I just wanted another opinion. Thank you!
_________________________
It's better to be absolutely ridiculous than absolutely boring. . . Marilyn Monroe

Return to Top

Moderator:  Andy_Z