I'm looking at a situation where our Trust Company and other affiliates want to start using each others CIP documentation. I know we need a "reliance" type contract to do this sort of thing. Is there a model type contract out there anywhere?

Anyone? I'm referring to the 103.121(b)(6)(iii) which requires the other institution to enter into a contract requiring it to certify annually to the bank that it has implemented its anti-money laundering program, and that it will perform the specified requirements of the bank's CIP.
That "contract" is vague. Are the examination procedures looking for certain things in this "contract"?

I am reviving an old thread since, I am also interested in a contract that is required if you depend on the CIP of your affiliate. Does anyone have that? Is there a sample somewhere? I am not sure what would need to be in the contract. We have examiners coming and they sited us at the last exam for not having CIP done correctly and we want to make sure we get this in place before they get here.

We have several affiliates that we use for reliance. We've executed a contract with each affiliate to allow the reliance (have your bank's legal council draft this). For the annual certs, we've elected to use the wording that's included in the reg itself. You will also want legal council to draft or at least review this. The wording I've attached below will need to be revised based on the recent Q&As. The regulators indicate that they don't expect the performing FI to perform the other FI's CIP (as indicated in the wording below).

CUSTOMER IDENTIFICATION ANNUAL CERTIFICATION

We, the undersigned financial institution, have agreed pursuant to the Customer Information Confidentiality and Customer Identification Agreement dated June 26, 2003 to perform any of the procedures of your financial institution’s CIP with respect to any customer who is opening or has opened an account or has established a similar formal banking or business relationship with your financial institution to provide or engage in services, dealings or other financial transactions. Pursuant to the aforementioned agreement and pursuant to 31 C.F.R. 103.121(b)(6) we have agreed and are required to provide the following annual certification:

We certify the following to be true:
1. We are subject to regulatory oversight of the following federal functional regulator [insert Federal Reserve, Office of the Comptroller of the Currency, etc.];
2. We are subject to a rule implementing 31 U.S.C. 5318(h);
3. We have implemented an anti-money laundering program (AML Program) that complies with the Bank Secrecy Act, as amended by the USA PATRIOT Act, and any future amendments (the “Patriot Act,” and together with the Bank Secrecy Act, the “Act”), the rules and regulations under the Act, and at a minimum our AML program:
a. Designates a compliance officer to administer and oversee the AML Program;
b. Provides ongoing employee training;
c. Includes an independent audit function to test the effectiveness of the AML Program; and
d. Establishes internal policies, procedures, and controls that are tailored to our financial institution’s particular business including, to the extent applicable, but not limited to:
i. A system reasonably designed to identify customers and their source of funds for purposes of the due diligence obligations set forth in the Act and the AML rules and Regulations;
ii. A system reasonably designed to prevent transactions with persons or jurisdictions that the federal government has included on its List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control (“OFAC List”) or with any other prohibited persons or jurisdictions that the federal government may identify from time to time, and to the best of our abilities we will not open any accounts on behalf of an affiliate financial institution for any person included in the OFAC List or with any other prohibited persons or jurisdictions identified by the federal government;
iii. A system reasonably designed to monitor and report suspicious activities or transactions;
iv. A system reasonably designed to share suspicious activity transaction information with your financial institution, as provided for in the AML rules and Regulations; and
v. A system to maintain records as required by the Act and the AML Rules and regulations generated from the operation of your financial institution’s AML Program.
4. If applicable, we acknowledge that we will be responsible for making any required suspicious activity reports as required by Section 356 of the Patriot Act and the AML Rules and Regulations. We agree to notify your financial institution of such filings to the extent permitted by applicable law.
5. We agree to furnish your financial institution with any information reasonably requested by your financial institution to assist with compliance with applicable anti-money laundering requirements.

IN WITNESS WHEREOF, the undersigned has executed this instrument as of the ________ day of __________________ 2004.


[FINANCIAL INSTITUTION NAME]
By:____________________________
Name:_________________________
Title:__________________________