Aren't All CIP Procedures Created Equal

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Question:

We require each owner of a new account to provide name, DOB, address, and ID number and we verify their identity and document it. An employee at our bank was recently put on as a co-owner on her daughters account at another bank by simply signing the signature card. She didn't even go to the bank to do it. Am I missing something or do some banks not have to follow the same rules we do?

Answer:

Not all CIP Policies are Created Equal.

Although the basic regulation applies equally to all banks, each bank's board of directors approves its own CIP Policy that should at least comply with the regulation's minimum requirements. One bank's board may require more than another, although both may comply with the minimum requirements of the regulation.

First published on BankersOnline.com 11/29/04