| September 6, 2002
Mr. Robert E. Feldman, Executive Secretary
ATTN: Comments/OES
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
RE: Consumer Identification Program
Dear Mr. Feldman:
I write on behalf of the Nebraska Bankers Association (NBA), a trade
association representing 273 of the 275 commercial banks and eight savings
and loans in the State of Nebraska. We are pleased to submit our comments
regarding the recently issued Customer Identification Program regulations.
While supportive of the general concepts underlying the proposed
regulations, we believe that some of the provisions of the regulation may
be overbroad and result in unnecessary burdens for the banking industry.
Specifically, we would make the following points for your consideration.
1. The regulation should not apply to individuals "seeking"
to open an account. Financial institutions should not be required to
maintain records in situations where an individual does not actually
receive financial institutions services;
2. Extending coverage of this regulation to all new signatories on an
account is extremely problematic. In cases where multiple signatories to
an account are large in number, verification of all of those individuals
will be extremely costly. Perhaps the regulation could be clarified to
provide a specific "risk-based" approach to the issue of
multiple signatories;
3. The proposed five-year record retention period is excessive. A
two-year period is more in keeping with many other record keeping
requirements for financial institutions;
4. Requiring the copying and retention of drivers licenses is
impractical and burdensome and will result in financial institutions
utilizing other forms of verification. Retention of the account
application form, with a notation of the information received, should be
sufficient for compliance with the rule. In addition, a requirement to
copy and retain an individual's drivers license may violate existing
truth in lending regulations or other state laws which may restrict, if
not prohibit, the retention of an individual's drivers license
information.
Once again, we appreciate the opportunity to comment on the proposed
regulations and trust that you will give our comments due consideration in
issuing the final rule.
Sincerely,
George Beattie
Executive Vice President
Nebraska Bankers Association
233 South 13th Street, Suite 1100
Lincoln, NE 68508 |
