We have a deceased customer who had an IRA with her three sons named as beneficiaries. We need to open inherited IRAs for the sons, one of whom is incarcerated. Our Customer Identification Program (CIP) requires a primary and secondary form of identification. What steps do we need to take to verify the identity of an incarcerated individual? We were able to pull up a photograph of the incarcerated son on the Department of Corrections website using his inmate identification number. What more should we do? Our CIP does not cover this situation.

We believe you may rely on the information posted on the Illinois Department of Corrections’ (IDOC) website, which is drawn from government records on file with the IDOC, for one form of government-issued identification for purposes of your customer identification program (CIP). Since your CIP policy requires two forms of government-issued identification, you may wish to request a letter on government letterhead from the prisoner’s caseworker or counselor verifying his identity and his name, birthdate, and social security number on file with the IDOC.

When opening a new account for an individual, banks must obtain the person’s name, birthdate, address and taxpayer identification number and verify the information through documentary or non-documentary methods. Documentary methods of verification include an “unexpired government-issued identification evidencing nationality or residence and bearing a photograph or similar safeguard, such as a driver’s license or passport.” Non-documentary methods of verification include “comparison of information provided by the customer with information obtained from a consumer reporting agency, public database, or other source,” among other methods.

The prisoner records on file with the IDOC’s website include the prisoner’s name, date of birth, location, prisoner identification number, and photograph. Consequently, we believe you may be able to rely on this information for CIP purposes.

As to a second form of identification, you may be able to obtain a copy of any government-issued identification documents being held at the correctional facility where the prisoner is located. Illinois law requires that any government-issued identification documents of a committed person in the possession of a county sheriff at the time the person is committed to the IDOC must be retained by the IDOC (such as a driver’s license). In the event you are unable to obtain a copy of the prisoner’s government-issued identification documents, we recommend requesting a letter on government letterhead from his caseworker or counselor verifying his identity and his name, birthdate, and social security number on file with the IDOC.

For resources related to our guidance, please see:

FinCEN Regulations, 31 CFR 1020.220(a)(2)(i) (“[T]he bank must obtain, at a minimum, the following information from the customer prior to opening an account: (1) Name; (2) Date of birth, for an individual; (3) Address, . . . and (4) Identification number, which shall be: For a U.S. person, a taxpayer identification number; . . .”)

FinCEN Regulations, 31 CFR 1020.220(a)(2)(ii)(A) (“Verification through documents. For a bank relying on documents, the CIP must contain procedures that set forth the documents that the bank will use. These documents may include: (1) For an individual, unexpired government-issued identification evidencing nationality or residence and bearing a photograph or similar safeguard, such as a driver’s license or passport . . . .”)

FinCEN Regulations, 31 CFR 1020.220(a)(2)(ii)(B)(1) (“Verification through non-documentary methods. For a bank relying on non-documentary methods, the CIP must contain procedures that describe the non-documentary methods the bank will use. . . . These methods may include contacting a customer; independently verifying the customer’s identity through the comparison of information provided by the customer with information obtained from a consumer reporting agency, public database, or other source; checking references with other financial institutions; and obtaining a financial statement.”)

FinCEN Regulations, 31 CFR 1020.220(a)(2)(ii)(B)(2) (“The bank's non-documentary procedures must address situations where an individual is unable to present an unexpired government-issued identification document that bears a photograph or similar safeguard; the bank is not familiar with the documents presented; the account is opened without obtaining documents; the customer opens the account without appearing in person at the bank; and where the bank is otherwise presented with circumstances that increase the risk that the bank will be unable to verify the true identity of a customer through documents.”)

Interagency FAQs: Final CIP Rule (“Q: Can a bank use an employee identification card as the sole means to verify a customer’s identity? A: A bank using documentary methods to verify a customer’s identity must have procedures that set forth the documents that the bank will use. The CIP rule gives examples of types of documents that have long been considered primary sources of identification and reflects the Agencies’ expectation that banks will obtain government-issued identification from most customers. However, other forms of identification may be used if they enable the bank to form a reasonable belief that it knows the true identity of the customer. Nonetheless, given the availability of counterfeit and fraudulently obtained documents, a bank is encouraged to obtain more than a single document to ensure that it has a reasonable belief that it knows the customer’s true identity.”)

Illinois Department of Corrections Website, Offender Search

Illinois Unified Code of Corrections, 730 ILCS 5/3-4-3.1 (“(a) Driver's licenses, State issued identification cards, social security account cards, or other government issued identification documents in possession of a county sheriff at the time a person is committed to the Illinois Department of Corrections shall be forwarded to the Department. (b) The Department shall retain the government issued identification documents of a committed person at the institution in which the person is incarcerated and shall ensure that the documents are forwarded to any institution to which the person is transferred.”)

County Jail Standards, 20 Ill. Adm. Code 701.40(k) (“A record or records for each detainee shall be established at the time of admission and shall be maintained throughout the period of confinement. . . . The record shall include: The detainee’s name and social security number. . . . The detainee’s address. . . . The detainee’s age and date of birth.”)
Funds of Committed Persons 20 Ill. Adm. Code 205.3(a) (“A committed person in a correctional facility of the Adult or Juvenile Division may have an account with a federally insured financial institution. The committed person shall be responsible for controlling his own savings passbook or deposit certificates.”)