Federal Deposit Insurance Corporation and other US banking agencies with FinCEN concurrence grant CIP exemption allowing third-party collection of taxpayer identification numbers

The Federal Deposit Insurance Corporation, together with the Office of the Comptroller of the Currency and the National Credit Union Administration and with the concurrence of the Financial Crimes Enforcement Network, issued an order exempting banks from the Customer Identification Program (CIP) Rule requirement to collect taxpayer identification number (TIN) information directly from customers in the circumstances set out in the order. The exemption permits banks to obtain TIN information from a third party instead, while continuing to comply with the CIP Rule’s broader customer identification and verification requirements. The FDIC noted the order applies to all FDIC-supervised financial institutions and covers banks subject to the agencies’ jurisdictions, provided the bank otherwise complies with the CIP Rule, including maintaining written procedures that ensure TIN information is obtained before account opening, are based on the bank’s assessment of relevant risks, and apply risk-based identity verification procedures designed to enable a reasonable belief that the bank knows the true identity of each customer. FinCEN views the alternative collection method, when used appropriately, as consistent with the purposes of the Bank Secrecy Act, and the agencies determined the exemption can be consistent with safe and sound banking practices; implementation is optional and banks may continue collecting TIN information from customers.