In our view, FinCEN’s identification requirements would not prevent your bank from using a Global Entry Card to verify a beneficial owner’s identity, but whether you accept the card is a business decision for your bank.

The new identification and verification procedures for beneficial owners are the same as the existing customer identification program (CIP) requirements for individual customers (except that for beneficial owners, the institution may rely on copies of identity documents rather than obtaining originals). To identify an individual, banks must obtain the individual’s name, birthdate, address and taxpayer identification number. Banks then must verify an individual’s identity using documents. For purposes of this verification, FinCEN’s regulations state that an acceptable document would 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.” Interagency CIP guidance clarifies that “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.”

A Global Entry Card is issued by the U.S. government through U.S. Customs and Border Protection, and the cards include an individual’s photograph, birthdate, and citizenship. The cards are issued only to U.S. citizens, U.S. lawful permanent residents, or Mexican nationals.  All applicants undergo “a rigorous background check” and in-person interview before enrollment into the program. Consequently, we believe that these cards could be relied on to verify an individual’s identity, particularly if combined with other documents. But it remains up to your bank to make the risk-based decision as to whether to rely on a Global Entry to verify an individual’s identity.  

For resources related to our guidance, please see:

• FinCEN Beneficial Ownership Rule, 31 CFR 1010.230(b) (“With respect to legal entity customers, the covered financial institution’s customer due diligence procedures shall enable the institution to: . . . (2) Verify the identity of each beneficial owner identified to the covered financial institution, according to risk-based procedures to the extent reasonable and practicable. At a minimum, these procedures must contain the elements required for verifying the identity of customers that are individuals under § 1020.220(a)(2) of this chapter (for banks) . . . provided, that in the case of documentary verification, the financial institution may use photocopies or other reproductions of the documents listed in paragraph (a)(2)(ii)(A)(1) of § 1020.220 of this chapter (for banks) . . . A covered financial institution may rely on the information supplied by the legal entity customer regarding the identity of its beneficial owner or owners.”)

• FinCEN Regulations, 31 CFR 1020.220(a)(2) (“The CIP must include risk-based procedures for verifying the identity of each customer to the extent reasonable and practicable. The procedures must enable the bank to form a reasonable belief that it knows the true identity of each customer. These procedures must be based on the bank’s assessment of the relevant risks, including those presented by the various types of accounts maintained by the bank, the various methods of opening accounts provided by the bank, the various types of identifying information available, and the bank's size, location, and customer base. At a minimum, these procedures must contain the elements described in this paragraph (a)(2).”)

• 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 . . . .”)

• 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.”)

• U.S. Department of Homeland Security, Global Entry Program (“Global Entry is a U.S. Customs and Border Protection (CBP) program that allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States. . . .Travelers must be pre-approved for the Global Entry program. All applicants undergo a rigorous background check and in-person interview before enrollment.”)

• U.S. Department of Homeland Security, Global Entry Card (“Global Entry cards are issued to Global entry members who are U.S. citizens, U.S. lawful permanent residents and Mexican nationals. . . .”)