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FDIC Federal Register Citations |
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| September 6, 2002 Executive Secretary Attention: Comments /OES Federal Deposit Insurance Corporation 550 17th Street, N.W. Washington, D.C. 20429 Re: Proposed Rule on Customer Identification Program under Section 326 of the U.S.A. Patriot Act. Wakefield Co-operativeBank is a $100 million mutual form, community bank with two offices located north of Boston. We have approximately 10,700 deposit accounts totaling approximately $94,000,000. Comments Definitions Customer We need clarification as to the definition of seeking to open a new account, specifically in regard to loans. For example, is the person considered to be seeking credit when they turn in a loan application? If so, what verification must be obtained at this time? What are our responsibilities for verification if the loan application is withdrawn, or credit is denied? It seems impractical to classify all signers on every account as customers. For example, businesses assign signatory authority to officers and employees based on the operations of the company and the purpose of the account. The list of authorized signers logically changes in conjunction with personnel changes. These signers do not have ownership of the account funds. In regard to individuals, I suggest that the definition of a customer apply to signers who are owners of the account or who open the account on behalf of another U.S. person. Customer Identification Program Limited exception Many new businesses, trusts and estate fiduciaries obtain EINs by calling the IRS' Tele-TIN line. The IRS provides the caller with a confirmation letter within 30 days, but the customer will not have a copy of an application to give to the bank. I suggest that banks be allowed to accept a written statement from the customer that they have applied for the EIN, as long as the bank monitors the "awaiting TIN' status of the account as required by current law. Information required It is not reasonable or practicable to obtain this information for all individuals designated as authorized signers on business accounts. Would employers have to disclose to job applicants that they might be required to provide this information to a bank for verification as a provision of their employment? I again recommend that such signers not be included in the definition of customers. Verification By virtue of being a small, local community bank, we have customer relationships that go back a number of years. Our personnel know these customers very well. At the time the accounts were opened, though, we would not have used verification procedures consistent with the proposal. Asking for verification documents at this time would be uncomfortable for both the customer and our personnel. Our history with these customers constitutes a compensating control, and therefore, I suggest that existing customers not be subject to verification at this time. What would be the identification and verification requirements for a minor opening an account, such as a passbook savings? If they are not old enough to have identifying documents or credit history, would we identify and verify the parent and their relationship to the child (i.e., birth certificate)? Would the school verify the identity of a child opening an account at a high school branch? Comparison with Government Lists I suggest that the regulation specify the lists that customers must be compared against, and that the lists be made readily available to banks and their third party screeners. This list would ideally include the FBI "Control List". Customer Notice We would appreciate model language for lobby posting and written notices. The model language should state the bank is requesting information to verify identity as required by Federal Law. Wakefield Co-operative Bank Wakefield, MA. |
| Last Updated 09/11/2002 | regs@fdic.gov |