How is everyone going about verifying the ID used to open the account? I must admit, I am not sure how to go about verfication of DL's. SSN seems to be covered, but not DL.

E-funds, the folks that bring us ChexSystems, offers Driver's LicenseChex(SM) as an enhancement to their New AccountChex(SM) service, according to their August 2002 QuickNews newsletter. According to the newsletter, the service "positively identifies the new account applicant's name and date of birth associated with the participating states' drivers license records."

Of course, there's some sales "hype" in there, since nothing can "positively identify" anyone, and the key to the service may be the number of states that participate. But it looks like they's compare the name and DOB you associate with a given state's driver's license number with the records at the DMV, and give you a "heads up" if there isn't a match.

What it won't catch, of course, is the turkey who used phony ID to get a valid license.

Coast to Coast also includes a DL check. If you'd like more information, PM me.

I think Ms. Sweet may be taking this further than the proposed regulation intends. You don't have to verify a person's drivers license. You use the drivers license to verify the information obtained from the customer (e.g., name, address, date of birth, and whatever else the drivers license may contain).

So the first step in the customer identification program is to ask for the information. The second step is to verify the information. Your CIP should describe when you will verify that information via documents, e.g., a drivers license, passport, etc., or via other means. The drivers license is just one document you may use to verify customer information. We suggest requiring more than one document to verify information. AR.

Ditto, AR.

The drivers license is documentary verification of the information provided by the customer. ChexSystems provides non-documentary verification of the information provided by the customer. You are expected to have a program that uses either or both tools to help you know the customer's true identity.

Tina:
The USAPA requires banks to develop their own procedures for identifying its customers, based upon the type of risk involved with that particular type of account. The Act provides the basic guidelines that must be included. While each new account must be verified, the manner in which they are verified can differ.

The first thing that you must do is decide what type of accounts present the highest risk to your bank. In my particular case, commercial DDA would be the highest risk due to the high-risk nature of their businesses and the multi-national ownership of these corporations.

Once you have established this, you can determine what your "extra" steps you will take (if any). For commercial accounts, maybe a personal visit to the location of the business will suffice. You could also use tools available on the internet to check phone numbers and addresses.
Whatever you do to verify should be documented, of course.

The biggest problem we face is the ability to actually verify whether SS# or DL# are real. They may look valid and we can verify the validity of the SS#, but do not know if the name on the card is identified with that SS#, nor can we know if the picture on a DL# is actually associated with the name on the license. If the regulators (and law enforcement) expect real help, we should be able to share in some of the databases that are available to them. (Yeah, Yeah privacy is a problem, but if they expect us to act as ID police, at least give us the tools.)

In reply to:

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If the regulators (and law enforcement) expect real help, we should be able to share in some of the databases that are available to them.

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Great point.

I agree that the drivers license is only one of the ways to verify the identity of an individual. If the employee looks for things to authenicate the license (such as expiration date, hologram, description matches person presenting the license, etc) then "verification" of that ID could be deemed to have occurred. Do you guys think that a photocopy of the license is necessary, if the license # and state of issuance is recorded? It doesn't appear to be required by the proposed CIP rule.

Because of the number of errors I have seen because of typos and general carelessness, we started photocopying DLs last year. It is helping to reduce errors in required reporting such as CTRs.

I found an article at www.complianceheadquarters.com that actually states A record must include four items:

1. The identifying information provided by the customer
2. a copy of any document that is relied on to verify identity.
3. Information regarding the non-documentary methods used to verify identity and their results, and
4. How the financial institution resolved any discrepancies in the information obtained from the customer.

Section 326 requires reasonable procedures for maintaining records of the information used to verify a person's name, address, and other identifying information. Where a bank relies upon a "document" to verify identity, the bank must maintain a copy of the document that the bank relied on that clearly evidences the type of document and any identifying information it may contain. This must be maintained for a period of 5 years after the date the account is closed.

Everyone needs to keep in mind that some states don't allow taking copies of DL's.

Yes I read the article and re-read the proposed rule and found the very same thing! (under section (b)(3)(B) under "Recordkeeping") Thanks for pointing that out.

Reread both the article & proposed rule. You are correct. Thanks for the input.

Do we actually have to obtain customer's dates of birth? Can we just get their ages?

Is everyone inputting this data into a computer system or are you maintaining paper files for the record retention?

The proposal says date of birth....

Could those of you who are in states where there is a statute prohibiting the copy of driver's licenses explain how your statute works? Does it specify that your own state's DLs cannot be copied? Does it purport to prohibit anyone, any place, from copying a DL issued by your state? Does it provide that no DLs may be copied within your state (regardless of the state of issuance)? Does it have a parallel prohibition that is applicable to state-issued ID cards?

Inquiring minds want to know. I would also like to see if we can get enough information to create a chart of these state laws for BOL, so if you can furnish the citation, too, that would be extremely helpful.

Did BOL ever get a list/chart of states where there is a statute prohibiting the copy of driver's licenses?

Please continue this string with any new information.

Okay, I'll start the list off with North Carolina:
NCGS §20-30(6) allows black and white photocopies of driver's licenses.

It states, in pertinent part, "It shall be lawful to make a black and white photocopy of a drivers license, learner's permit, or special identification card or otherwise make a black and white reproduction of a drivers license, learner's permit, or special identification card."

Only 49 states and D.C. to go!

MarkB

And Michigan - PA 300 of 1949, the Mich. Motor Vehicle Code, was amended by PA 126 of 2002, effective October 1. Section 257.310(9) reads: "A person who is in possession of 2 or more reproduced, altered, counterfeited, forged, or duplicated license photographs, negatives of photographs, images, licenses, or electronic data contained on a license or part of a license is guilty of a felony punishable by imprisonment for not more than 1 year or a fine of not more than $10000, or both."

I understand that some attorneys are suggesting that 'person' does not equate to 'corporation', therefore it's OK to copy. I also understand that there are other attorneys who aren't buying that argument. We're currently choosing not to copy.

Maryland:
§ 16-302. Duplication or reproduction of identification card or driver's license.
Statute text
(a) General provisions.- A person may not duplicate or reproduce the following:

(1) Any identification card issued under this title by the Administration; or

(2) A driver's license issued under this title.

(b) Production of facsimile identification card.- A person may not produce a facsimile of an identification card issued by the Administration or a driver's license unless the facsimile is:

(1) In black and white; or

(2) Less than one-half or more than twice the size of the identification card issued by the Administration or driver's license.
Leslie

I spent the better part of an hour researching this and can't find anything in Wyoming law under driver's licensing information that prohibits making copies.

Many of the state statutes appear to ALLOW paper reproductions in black and white.

Does this in any way PROHIBIT electronic reproductions in color - eg color flat bed scanner image stored on a computer?

I don't find anything in the Wisconsin statutes prohibiting the copying of drivers licenses.

I think the date of birth is to help in the event that you get a close match on OFAC. Some of the names listed as SDNs have a date of birth.