Answer:
That's not entirely correct. Here's one of the Q&A's from FinCEN's guidance on the CIP rules:
"1. Who is the “customer” when an account is opened by an individual who has power-of- attorney for a competent person who is the named owner of the account?
"The CIP rule provides that a "customer" generally is "a person that opens a new account." 31 C.F.R. Section 103.121(a)(3)(i)(A). When an account is opened by an individual who has power-of-attorney for a competent person, the individual with a power-of-attorney is merely an agent acting on behalf of the person that opens the account. Therefore, the "customer" will be the named owner of the account rather than the individual with a power-of-attorney over the account. By contrast, an individual with power-of-attorney will be the "customer" if the account is opened for a person who lacks legal capacity. 31 C.F.R. Section 103.121(a)(3)(i)(B)(1)."
You need to know whether the owner of the account has the legal capacity to contract. With the regulatory requirement as the basis of your bank's CIP, you may find that you need to apply the CIP process to the attorney-in-fact, regardless of whether the principal is competent.
First published on BankersOnline.com 2/25/08
print
share