Authorized Signer Requirements

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Question:

When opening a new business account, also a new bank relationship, are we required to get the authorized signer's social security number if the person refuses to give it to us? Does the Patriot Act apply to this at all?

Answer:

In most cases, the CIP regulation does not require that you obtain the SSN or other identifying information (other than name) of individuals who are only authorized signers. However, many financial institutions have decided that they want this identifying information on authorized signers and have included that requirement in their CIP programs. If that is the case, you have two options - get the information or refuse to allow that individual as a signer. In extreme cases, that could mean refusal to open the account at all.

First published on BankersOnline.com 5/14/07