If you use the BSA compliance form, keep it for at least five years after the account close date. Most lenders require the closing agent to complete this form at the time of closing. For this reason, make sure that the lock instructions require the no to get the correct identification and fill out the form. Section 326 requires the Secretary of the Treasury, as well as each of the agencies, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), to issue a regulation that requires financial institutions at least to use reasonable procedures to verify the identity of each person who wishes to open an account, to the extent appropriate and feasible. keep records of the information used to verify the identity of the individual; and determine whether the individual is on lists of known or suspected terrorists or terrorist organizations provided to the financial institution by a government agency. These final regulations apply to banks, savings banks, credit unions, private banks and trust companies. What is the difference between CIP and CDD? CIP involves collecting customer information for validation and verification. The CSD is the second phase of the anti-money laundering program where the information collected is analyzed. IDV, commonly known as identity verification, involves verifying a person`s identity to determine their authenticity. The borrower identification form is used to record the borrower`s credentials in order to establish the true identity of the borrower. The purpose of the form is to ensure that the lender has received written proof of the borrower`s identity. They are used to comply with the Customer Information Program (PIC) in accordance with the provisions of the Bank Secrecy Act (BSA) and to limit the frequency of identity theft.

A separate form is used for each co-borrower. Patriot Act disclosure is typically included with the borrower identification form because the disclosure includes the reasons for obtaining the credentials. Treasury Regulations, 31 CFR 1020.220, contain requirements for the implementation of a written PIC and provide for procedures requiring the collection of credentials for each customer at the time of account opening. At the time of closing, the closing agent (trustee, notary or billing agent) will ask the borrower to present identity cards or documents. Identification documents may include a passport, driver`s license, id cards, etc. The form is used to record the most important identification information of the documents, e.B. document type, identification number, state/country, date of issue and expiration date. No copy of identity documents is required. For example, if the borrower provides a driver`s license, the closing agent will record the license number, issue date, expiration date, and other important details in the form. A copy of the driver`s license will not be kept.

The CIP rule requires a bank to retain the credentials it received on the customer at the time of account opening for five years from the date the account was closed or, in the case of 7 Page 8 credit card accounts, five years after the account is closed or suspended. In July 2016, FinCEN published new rules regarding beneficial ownership:[2] Financial institutions must collect from the legal entity the name, date of birth, address and social security number or any other state identification number (passport number or other similar information in the case of foreigners) for persons who hold 25% or more of the stake in the capital of the legal entity (the case if applicable). and a person with significant responsibility for the control/management of the legal entity at the time of opening a new account. It is up to you to design the form as there are no laws, regulations or guidelines for investors that impose any form or content. The most important consideration is to ensure that the form captures the information needed to complete your customer information program. To complete the borrower identification form, the closing agent will ask you to bring at least two pieces of identification to the fence. It is the responsibility of the closing agent to note the information on the form. However, for security reasons, you should review the form completed by the filling agent to ensure that the information in the form is correct.

Don`t forget to take your ID back. There is no federal or state law or regulation that prevents banks from providing financial products to customers because the customer is not a U.S. citizen with lawful permanent residence. Under federal law, alienation is just one factor among many used to verify enough information to confirm the true identity of the customer. For example, the Federally Regulated Financial Institutions Review Board (“CSF”) provides consistent principles and standards to provide guidance to federal regulators. The FFIEC annually publishes the Bank Secrecy Act/Anti-Money Laundering Examination Manual for Money Services, which includes a compliance program called the Customer Identification Program (“CIP”) as required by Section 326 of the USA PATRIOT Act, 31 U.S.C. ยง 5318. According to the PIC, institutions that provide financial services, including banks, must have a written policy in place that allows them to develop reasonable grounds to suspect that they know the true identity of each customer […].