CIP and Savings Bonds

Answered by:

Question:

Do we need to verify identity under our CIP procedures for a customer purchasing or redeeming US Savings Bonds?

Answer:

Although you have a requirement to check ID before cashing a bond, there is not a CIP requirement here. Neither the purchasing, nor the encashment, of a savings bond creates an account within the meaning of the CIP regulations.

First published on BankersOnline.com 2/09/04