IBA Compliance Connection

Your go to source for compliance!

We have some Amish accounts. Our CIP/BSA policy requires that we obtain a copy of the customer’s birth certificate, as well as a letter from the customer’s church bishop. In addition, because the Amish do not have social security numbers, we search OFAC by name. Do you see anything here that will be an issue for the bank?

Dec 14, 2016

—

Yes, we believe that your current policy presents a compliance issue for your bank. FinCEN customer identification program (CIP) regulations require banks to obtain a tax identification number (TIN) for each U.S. customer before opening an account. The rule includes an exception for customers who have applied for but not yet received a TIN. However, there is no exception for individuals who do not obtain a TIN for religious reasons. Therefore, you should update your CIP policy to require TINs from all U.S. customers, regardless of their religious affiliation.

For resources related to our guidance, please see:

31 CFR 1020.220(a)(2)(i)(A)(4) (Requires banks to obtain an identification number from each customer prior to opening an account)

FinCEN CIP Rule FAQs (Q: “Can a bank open an account for a U.S. person that does not have a taxpayer identification number?” A: “No, the bank cannot unless the customer has applied for a taxpayer identification number, the bank confirms that the application was filed before the customer opened the account, and the bank obtains the taxpayer identification number within a reasonable period of time after the account is opened…”)