We do not believe that the Customer Identification Program (CIP) rules require your organization to collect identifying information for guarantors, though it may be advisable for some loan transactions. The CIP rules apply only to customers opening new accounts. The term “customer” means “a person that opens a new account,” and the term “account” means “a formal banking relationship . . . .” 31 CFR 1020.100(c)(1)(i). We do not believe that these terms apply to a guarantor who does not have a direct account relationship with your bank, and therefore we do not believe that the requirement to collect CIP information would extend to a guarantor.

We note that the FFIEC’s BSA/AML Examination Manual identifies some situations in which it may be advisable to collect CIP information from guarantors. The manual’s Customer Due Diligence section states that if a bank determines that a customer presents a higher risk, then you “should consider obtaining” information on “individuals with ownership or control over the account, such as beneficial owners, signatories, or guarantors.” Along similar lines, the Lending Activities section of the manual suggests you “complete due diligence on related account parties (i.e., guarantors, signatories, or principals)” for loans that are considered higher risks of money laundering and terrorist financing.