Looking for thoughts on grandfathered accounts that did not require the current CIP requirements, but now we have obtained identification from them. Is it required to input the information or just a good practice? I am on the side of inputting the information but am getting a little push back.

What does your CIP/BSA policy say? And if you obtain the license why wouldn't you input the info? In case you ever have to file a SAR/CTR? And what's the pushback? Because they have to enter a couple more pieces of info into the system?

It would only be "required" if you had not previously formed a reasonable belief you knew their true identity or if you policy requires it, as P*Q suggests.