Refusal to Provide TIN

Question: We have a customer who refuses to provide us with a TIN for his account. He says that he doesn't have one and refuses to get one. He's very anti-government. He convinced us when we opened the account that he was eligible to open an account with a financial institution by signing a W8BEN form. Now we're not so sure. We've already opened the account - it's non-interest bearing - is there anything we can/should do?

Answer: The Patriot Act says you must have a TIN or its equivalent for every account. And if you look at the IRS site, it says, very clearly: "The purpose of W8BEN Form is for US Inland Revenue Tax Purpose and is compulsory. Please note that you must neither be a US citizen or a green card holder." In our conversation with you, we learned your customer is indeed a US citizen. You should notify him, by mail - one regular mail, one registered letter - that unless he supplies you with a Tax Identification Number (TIN) in ten business days, you will close his account and send him a check for the balance. Meantime, accept no deposits into the account except cash. The reason for the ten days is to protect yourself from a lawsuit from him for dishonoring a check without notice. When he comes in to protest your action (and from our conversation, he certainly will) tell him you have to close the account because you would be in violation of banking regulations if you service his account without a TIN. Blame it on the government - he evidently does - and he should take his beef to the U.S. Department of Justice. You will be in violation of the Patriot Act if you maintain his account, which I'm sure your CIP already states. Your examiner will make mince-meat out of you.

Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 4, 5/05