Amish customers without IDs or SSNs

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Question:

We have an Amish population in more than one of our banking areas. Recently we are having problems with Amish people depositing cash or purchasing money orders with cash and they claim not to have identification or a Social Security number, stating their sect prohibits these items. I think I remember something in the past about particular procedures for Amish, but I can't find anything. Is there any reason to treat them differently from any other person? If so, where do I find the information?

Answer:

You are not required to treat the Amish differently; you can refuse to do business with them. However, most banks, whether based on marketing concerns or simple respect for religious beliefs, have chosen to develop more flexible standards of their own design. Currently, the law allows banks some flexibility regarding a requirement to obtain a TIN. Requiring identification before opening an account is simply a matter of policy which the bank is capable of revising.

There is no single resource that would describe how you might go about creating and administering such exceptions. There have been a number of threads and GURU posts on this topic. If you search BOL using "amish" you will find several. (If you want more background information, do a Google search using "amish" and "identification"; you will be buried with responses.)

Regulations which require financial institutions to establish a Customer Identification Program include a specific requirement to obtain an identifying number from an individual customer. There is no exception for the Amish. When compliance with these regulations becomes mandatory on October 1, 2003, you will not be allowed to open a new account for a U.S. citizen without obtaining a U.S.issued taxpayer identification number. Those same regulations would allow you to reduce identification requirements based on religious considerations if your bank felt the risk was justified. However, they would not let you waive the requirements for obtaining a Social Security number from an individual who is a U.S. citizen.

The Amish and some old order Mennonites do not believe in the concept of insurance, preferring to trust in God. In addition, it is their belief that their community, not government, should take care of their members who cannot take care of themselves. Being forced to participate in the Social Security system would violate those beliefs. Thus, they have a statutory exemption from participation and any attendant requirement to obtain a number. Their beliefs do not prohibit them from carrying identification so much as they prohibit them from having their photographs taken. (I have seen samples of Amish identification including the holder's physical description issued by the church and signed by a church official.)

First published on BankersOnline.com 9/8/03