2. Can a bank open an account for a U.S. person that does
not have a taxpayer identification number?
No, the bank cannot unless the customer has applied for a taxpayer
identification number, the bank confirms that the application was
filed before the customer opened the account, and the bank obtains
the taxpayer identification number within a reasonable period of
time after the account is opened. Note, however, that a bank does
not need to obtain a taxpayer identification number when opening
a new account for a customer that has an existing account, as long
as the bank has a reasonable belief that it knows the true identity
of the customer. A bank may also open an account for a person who
lacks legal capacity with the identifying information, including
taxpayer identification number, of an individual who opens an account
for that person.
31 C.F.R. ' 103.121(b)(2)(ii) -- Customer verification
1. Must a bank verify the accuracy of all of the identifying
information it collects in connection with 31 C.F.R. ' 103.121(b)(2)(i)?
The final rule provides that a bank's CIP must contain procedures
for verifying the identity of the customer, "using the information
obtained in accordance with paragraph (b)(2)(i)," namely the
identifying information obtained by the bank. 31 C.F.R. ' 103.121(b)(2)(ii).
A bank need not establish the accuracy of every element of identifying
information obtained but must do so for enough information to form
a reasonable belief it knows the true identity of the customer.
See 68 FR 25090, 25099 (May 9, 2003).
2. Can a bank use an employee identification card as the
sole means to verify a customer's identity?
A bank using documentary methods to verify a customer's identity
must have procedures that set forth the documents that the bank
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will use. The CIP rule gives
examples of types of documents that have long been considered primary
sources of identification and reflects the Agencies' expectation that
banks will obtain government-issued identification from most customers.
However, other forms of identification may be used if they enable
the bank to form a reasonable belief that it knows the true identity
of the customer. Nonetheless, given the availability of counterfeit
and fraudulently obtained documents, a bank is encouraged to obtain
more than a single document to ensure that it has a reasonable belief
that it knows the customer's true identity.
3. Can a bank use an electronic credential, such as a digital
certificate, as a non-documentary means to verify the identity of
a customer that opens an account over the Internet or through some
other purely electronic channel?
A bank may obtain an electronic credential, such as a digital certificate,
as one of the methods it uses to verify a customer's identity. However,
the CIP rule requires the bank to have a reasonable belief that it
knows the true identity of the customer. Therefore, for example, the
bank is responsible for ensuring that the third party uses the same
level of authentication as the bank itself would use. See also FFIEC
guidance titled "Authentication in an Electronic Banking Environment"
(July 30, 2001).
4. How should a bank verify the identity of a partnership
that opens a new account when there are no documents or non-documentary
methods that will establish the identity of the partnership?
A bank opening an account for such a partnership must undertake additional
verification by obtaining information about the identity of any individual
with authority or control over the partnership account, in order to
verify the partnership's identity, as described in 31 C.F.R. ' 103.121(b)(2)(ii)(C).
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