Our bank is considering opening accounts on line. I have warned them the risks are very great and automated monitoring would be required. (Right now we are doing everything manually.)I need specific help convincing the bank of the risks involved. Is there a source that shows the dangers and all the regs involved with opening accounts on line? Any help would be appreciated.

I don't know of a document that has what you need. However, were going to be offering this in the near future and one of your biggest concerns is CIP. I think if you conduct enough due diligence and have a way to authenticate an applicant on-line and perhaps require they send in copies of 2 forms of ID, you're on the right track. You will never eliminate all risks but to stay competitive, I think a lot of places will have to offer on-line account opening.

Thanks for your help.

We allow them to complete an application online but require they go to a branch to sign the signature card. We collect our CIP requirements at that time.

Perhaps a friendly call to your regulator is in order.

"What do you think of..."
"What risks do you think are most evident..."
"Have you heard of or seen other banks doing this well, or poorly and what advice could we get based on their experiences?"

You may get some kind words, resources to review, other examiners you should contact or a bank name to speak with if they've agreed in advance with the examiner. (The latter is harder here because the market is bigger and you could be in the other guys virtual back yard.