Answer:
There are BSA record retention requirements that indicate you must obtain the name, address and TIN of anyone redeeeming a CD. They do not require that you attempt to verify the information in any way. However, from experience, I can say that the worst mistake you can make in banking is to give the money to the wrong person.
My suggestion is that your procedures for identifying a POD beneficiary should be at least as stringent as they are for a person opening an account; e.g. two forms of acceptable identification, proof of death, etc. Obviously, bankers in small towns who went to the funeral service and sat beside the beneficiary both years of their freshman biology class have no need to be so formal.
First published on BankersOnline.com 6/19/06
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