Summary: | The federal banking, thrift and credit union regulatory agencies, the Financial Crimes Enforcement Network and the Department of Treasury have jointly issued additional interpretive guidance on the application of the “Customer Identification Programs for Banks, Savings Associations, and Credit Unions” regulation. The guidance is attached. |
Highlights:
Continuation of FIL-34-2005 Distribution: Suggested Routing: Note: | ||||
Financial Institution Letters FIL-34-2005 April 28, 2005 | ||||
New Anti-Money Laundering Guidance The Federal Deposit Insurance Corporation (FDIC) is issuing the attached additional interpretive guidance to financial institutions on the application of the Customer Identification Program (CIP) rule (31 C.F.R. 103.121), which is the regulation implementing Section 326 of the USA PATRIOT Act. This guidance is also being issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, the Financial Crimes Enforcement Network, and the Department of Treasury (Treasury). Section 103.121 of Treasury’s Financial Recordkeeping and Reporting Regulations (also called the Bank Secrecy Act) requires that financial institutions implement a written risk-based customer identification program; maintain records, including customer information and methods used to verify customers’ identities; and compare the names of new customers against government lists of known or suspected terrorists or terrorist organizations. The attached Frequently Asked Questions (FAQs) document provides additional interpretive guidance to the CIP rule. Financial institutions are expected to implement additional principles consistent with safe and sound risk-management practices when conducting customer due diligence, underwriting or account administration.
|