The Federal Deposit Insurance Corporation’s Acting Chairman Travis Hill sent a letter to the Financial Crimes Enforcement Network (FinCEN) supporting greater flexibility in certain Customer Identification Program (CIP) requirements for bank-fintech partnerships, including generally allowing banks to collect only the last four digits of a customer’s Social Security number rather than the full nine digits. Hill pointed to the approach already permitted for credit card customers and backed extending it more broadly to better align regulatory requirements with modern onboarding processes, while signalling a willingness to work with other federal regulators on modernization.
Federal Deposit Insurance Corporation 2025-02-07
Federal Deposit Insurance Corporation urges the Financial Crimes Enforcement Network to allow last four digit Social Security number collection under Customer Identification Program rules for bank fintech partnerships
The Federal Deposit Insurance Corporation's Acting Chairman Travis Hill advocated for more flexible Customer Identification Program requirements in bank-fintech partnerships, suggesting banks collect only the last four digits of a customer's Social Security number. Hill supports aligning these requirements with modern onboarding processes and is open to collaborating with other federal regulators on modernization efforts.