Posted By: Luvinit
CIP - Verification - 11/02/11 03:50 PM
We are having our BSA exit this PM and the BSA examiner is citing us for relying on our 3rd party dealer to verify the identification information. The examiner states that the reliance provision is only permitted on other financial institutions regulated by a Federal function regulator and is an apparent violation of Section 103.121(b)(3)(i)(A) through (D).
We have an agreement with this third party dealer that it will provide the notification, obtain the identifying information, verify the identifying information and document the information our our Worksheet. We have been doing this since 2003 and have had several exams by the FDIC and have never been cited on this.
My reliance has been on the section in FFIEC's BSA/AML Examination Manual's section on "Use of Third Parties" where a bank is permitted to arrange for a third party, acting as its agent in connection with a loan, to verify the identiy of its customer.
Has something changed or have we been incorrect all this time? I'm still of the opinion we are not incorrect, but would appreciate feedback!
We have an agreement with this third party dealer that it will provide the notification, obtain the identifying information, verify the identifying information and document the information our our Worksheet. We have been doing this since 2003 and have had several exams by the FDIC and have never been cited on this.
My reliance has been on the section in FFIEC's BSA/AML Examination Manual's section on "Use of Third Parties" where a bank is permitted to arrange for a third party, acting as its agent in connection with a loan, to verify the identiy of its customer.
Has something changed or have we been incorrect all this time? I'm still of the opinion we are not incorrect, but would appreciate feedback!