Ok, after several meeting and discussions about our CIP; I am faced with some very angry managers when informing them that copies of ID must be retained. Are we supposed to go back to Customer Information Files in the branches? What is everyone else doing for this? Are you taking paper copies and retaining them in the branch?

We're centralizing the filing process so that we can keep a better handle on which customers have and have not been ID'd. Also, it will be easier for one person to take care of pulling the closed files after 5 years than to have many people doing it.

Those angry managers are going to have to accept that there is no choice in this and that their customers will have to do this anywhere else they go. We are centralizing and keeping the CIP files at our main location also. We are just starting over with getting new photos of ID on current customers, instead of trying to dig in old files to see if we have them from before. Then we plan on tracking on our CIF system with a code of if current customers have been IDd or not.

I keep hearing rumors the final regs (to be issued on 10/28) will eliminate the "copy the ID" requirement and allow "notation of ID info." In Michigan it is a violation of state law to copy the drivers license, no exceptions for Patriot Act compliance. So the poor bankers here have to decide which prison system they prefer? State or fed.

Got a chuckle out of that one. Hey, where did you hear that information that they would be eliminating the ID requirment? That seems to be the key that seperates the CIP from the KYC. Everyone already has a KYC policy...it was the documentation that made this one stand out. ???

There is talk that the photocopy requirement may be deleted from the final. I'm not sure how much of a change can be made from what was originally requested by Congress. I thought I recalled that being a photocopy, but I can't swear to it. It it wasn't specific, it might change.

In my comment letter I indicated that if a branch had their copier break down, deposit and loan production would have to come to a halt or redundant backups, i.e. expensive, would be required. Others complained as well.

The answer is, we don't know yet what will be in the final.

In my comment letter I had indicated a certification process for identification requirements. I feel that certifying this information would be sufficient. I have also developed a new account matrix which can indicate this certification process.

We will be scanning copies of the ID into our optical archives, but also we plan to make a notation on the customer info screen with the expiration date of the ID. That way, a CSR can look at the screen and see that a current ID already has been taken, or has expired and a new one should be seen. This will also remove the actual copy from loan files, to avoid any discrimation considerations.

Still trying to figure out how to get loan officers or secretaries to run business customers against the OFAC lists. With consumer debt, we run a credit bureau which includes an OFAC alert, but as you know, commerical lending is a whole other ballgame!

Maybe I have simply missed it, but I have not heard much of a public up-roar to the collecting/copying ID (i.e., drivers license, etc.) like there was with the KYC a few years ago. While 9/11 changed a lot of people's thinking, it gets personal when opening an account you ask for ID for AND COPY it. Just meandering thoughts...

As I read the proposed regulation, I am not convinced that photocoping drivers license is mandated. Instead, 103.121(b)(2) ...banks to implement and comply with reasonable procedures for verifying the identity of any person seeking to open an account, to the extent reasonable and practicable. Section 103.121(b)(3) ...under the proposal, a bank is required to maintain a record of the identifying information provided by the customer. Where a bank relies on a document to verify identity, the bank must maintain a copy of the document the bank relied on that clearly evidences the type of document and identifying information it may contain. IMHO, the operative word is "reasonable". If the photocopy were counterfeit or altered, the picture is of little value until a national biometic database is established. Unless someone knows who the person is on the phony ID, you are still on square one.

Okay, fire away!

I have a new question to pose. According to Section 103.121(b)(3) Recordkeeping Under the proposal, a bank is required to maintain a record of the identifying information provided by the customer. Where a bank relies upon a document to verify identiy, the bank must maintain a copy of the document that the bank relied on that clearly evidences the type of document and any identifying information it may contain.

Are you all reading this, as I am, that we will need to obtain a copy of SS card and Identification i.e. DL, ID card, Alien Reg.?

There are probably two reasons for the lack of a hue and cry.

• Americans are generally more receptive (read docile) when confronted by "security" procedures, and tend to be cowed by the acronym "USA PATRIOT" Act.
• There has not been the same degree of rabble-rousing that occurred in connection with the KYC proposal.

It's rather ironic, because, frankly, the KYC proposal made a whole lot more sense from the perspective of detecting suspicious activity. And the Section 326 proposals really don't buy us much security as a country (although they might prevent some identity fraud). With or without copied IDs.

I doubt that you would need a copy of the SS card, as most customers do not actually carry it with them. Additionally, W9s, consumer reports, and the like can help further validate a SSN.

Ok, that helps tremendously. Thanks

Go to Penley, Inc. at www.penleyinc.com. The service we just bought from them ELIMINATES rge need for the copies -- they do it all.....CIP, OFAC, ID valdation, record keeping --- this is what we are all looking for. I got a dem yesterday and my ceo bought it today -- I am done with the whole process. It is taken care of already

In reply to:

---

Where a bank relies on a document to verify identity, the bank must maintain a copy of the document the bank relied on that clearly evidences the type of document and identifying information it may contain.

---

I think this is where everyone believes we have to maintain a copy.

And, once again, we need to remember we're looking at the proposal as if it were carved in stone. The legislation made no such requirement. Paraphrasing, it said we'll need to maintain records of how we verified the ID.

I believe that the agencies will relent on this question of making copies of source documents. But that's just my hopes talking.

Is Caveat Lector anything like Hannibal Lechter?

That depends. Is Jodie Foster around?

Is there a Latin scholar out there? Have I dredged up from Latin 1 the correct translation for "Let the reader beware"?

Either that, or it's "Let the lectern beware!"

From my Webster's Dictionary that has a Foreign Words and Phrases section...

caveat lector is reader beware.

So John, according to Webster's - you are accurate.

Thank goodness. I was beginning to think it was something I heard "Clarice" say to Hannibal!

You could say for the necktie impaired, Cravat lecter. Oops, this probably should be in the Frivolity section!

Nanwa - You mentioned the credit bureau giving an OFAC alert. Is that something all the bureaus do automatically?

I don't know if they all do it. But I think it is an add-on service for $.