deemed to have “opened a new account” for purposes
of the CIP rule until he or she contacts the bank to assert an ownership
interest over the funds, at which time a bank will be required to
implement its CIP with respect to the former employee.
This interpretation applies only to (1) transfers of funds as required
under section 657(c) of EGTRRA, and (2) transfers to banks by administrators
of terminated plans in the name of participants that they have been
unable to locate, or who have been notified of termination but have
not responded, and should not be construed to apply to any other
transfer of funds that may constitute opening an account.
5. A bank is an agent for a (bank) credit card issuer.
The cards are co-branded, the two banks share in the revenue from
the cards issued. However, the issuer approves the credit card applications
and handles collections. Is a person who obtains a credit card a
customer of the agent bank or the card issuer?
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A person who
receives a credit card is receiving an extension of credit from, and
therefore is establishing an account with, the issuing bank. The agent
bank is compensated by the issuing bank and not by the customer. For
these reasons, the issuing bank is responsible for ensuring that its
CIP applies to the customer. However, the agent bank may perform parts
of the CIP on behalf of the issuing bank. As with any other responsibility
performed by an agent, the issuing bank ultimately is responsible
for the agent’s compliance with the requirements of the CIP
rule. See 68 FR 25090, 25104 (May 9, 2003). Alternatively, the issuing
bank may rely upon the agent bank to perform elements of its CIP,
provided that the issuing bank is able to satisfy the requirements
of the reliance provision, 31 C.F.R. § 103.121(b)(6), including
the requirement that the person be a customer of both the issuing
and agent bank.
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