The Federal Reserve Board joined other federal financial institution regulatory agencies and the Financial Crimes Enforcement Network in giving banks and credit unions flexibility to use an alternative method to collect certain customer identification information. The agencies now permit institutions to obtain a customer’s tax identification number from a third party, rather than directly from the customer. Banks and credit unions are legally required to verify a potential customer’s identity by obtaining specified identifying information before opening an account, a requirement implemented in 2003. Use of the alternative collection method is optional, and institutions are not required to change their processes; risk-based procedures are expected to continue to underpin identity verification. The Board coordinated the action with the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration, alongside FinCEN.
Federal Reserve Board 2025-07-31
Federal Reserve Board joins other agencies in allowing banks and credit unions to obtain tax identification numbers from third parties for customer identification
The Federal Reserve Board, in coordination with other federal agencies and the Financial Crimes Enforcement Network, now allows banks and credit unions to use third-party sources to obtain customers' tax identification numbers. This optional method provides flexibility in verifying customer identities while maintaining risk-based procedures.