Proper Procedures to CIP for a POA

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Question:

What are the proper procedures to CIP for an attorney-in-fact (AIF) under a power of attorney? My question comes from an instance where we have a CIP grandfathered Amish customer and they would like to add someone to their account that doesn't have a TIN and refuses to get one. They went to an attorney to get around the CIP restriction and made him an AIF so he wouldn't have to go through the normal CIP process. Is an AIF considered a customer under 103.121?

Answer:

First, let's update the regulatory reference to FinCEN's Chapter X, which replaced 12 CFR Part 103 in March 2011. The CIP requirements are now found in 12 CFR Part 1010, at 1010.220.

Adding an authorized signer to an account (whether or not he or she is an attorney-in-fact) does not require application of CIP requirements to the AIF under the regulation. However, if your bank's board-approved CIP requires application of CIP requirements including the obtaining of the authorized signer's Social Security number or other TIN without exception, you'd risk being cited for non-compliance with your own policies in your next exam.

First published on BankersOnline.com 8/13/12