Answer:
The Bank Secrecy Act, as amended by the PATRIOT Act, requires you to verify the identity of any business entity that opens an account with your bank. It does not require you to identify mere signatories on that account. It also does not provide any guidance as to how you should document who the signatories are.
There is no regulation that requires banks to follow specific procedures in establishing the existence of a business entity or an individual's authority to act on behalf of a entity. What your bank requires is a function of its tolerance for risk as reflected in its own policies.
BOL has offered webinars on opening accounts for businesses. The program can be ordered through the Bankers Store. You might also check with your state bankers association to see if their offerings on "new accounts" or "deposit administration" address business accounts.
First published on BankersOnline.com 5/08/06
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