Regulatory Alerts2002-07-23
Added
Customer Identification Programs for Certain Banks That Do Not Have a Federal Functional Regulator
The Financial Crimes Enforcement Network proposes regulations to implement Section 326 of the USA PATRIOT Act for private banks, state-chartered credit unions that are not federally insured, and trust companies lacking a federal functional regulator. The proposed rule requires these institutions to establish written Customer Identification Programs approved by their board of directors, incorporating risk-based procedures to verify customer identity, maintain records for five years after account closure, and check customers against government terrorist lists. Minimum identifying information required includes name, address, date of birth for individuals, and an identification number such as a taxpayer identification number or passport details.