On June 27th, FinCEN issued an Order that provides banks with greater flexibility when it comes to obtaining customer tax identification numbers (TINs). The Order was issued in conjunction with the OCC, FDIC and NCUA and allows banks regulated by these Agencies to obtain TIN information for a customer from a third-party rather than directly from the customer. This assumes, of course, that the bank still complies with all other requirements of their Customer Identification Program (CIP). So, for example, while the TIN may now be obtained from a third-party, the bank must still obtain it prior to opening the account.
The Order states:
The exemption in this ORDER permits a bank to use an alternative collection method to obtain TIN information from a third-party rather than from the customer, provided that the bank otherwise complies with the CIP Rule, which requires written procedures that: (1) enable the bank to obtain TIN information prior to opening an account; (2) are based on the bank’s assessment of the relevant risks; and (3) are risk-based for the purpose of verifying the identity of each customer to the extent reasonable and practicable, enabling the bank to form a reasonable belief that it knows the true identity of each customer.
This Order was addressed in more detail during our July AML/CFT Membership Group. Here’s a sample:
On June 27th, FinCEN issued an Order that provides banks with greater flexibility when it comes to obtaining customer tax identification numbers (TINs). The Order was issued in conjunction with the OCC, FDIC and NCUA and allows banks regulated by these Agencies to obtain TIN information for a customer from a third-party rather than directly from the customer. This assumes, of course, that the bank still complies with all other requirements of their Customer Identification Program (CIP). So, for example, while the TIN may now be obtained from a third-party, the bank must still obtain it prior to opening the account.
The Order states:
The exemption in this ORDER permits a bank to use an alternative collection method to obtain TIN information from a third-party rather than from the customer, provided that the bank otherwise complies with the CIP Rule, which requires written procedures that: (1) enable the bank to obtain TIN information prior to opening an account; (2) are based on the bank’s assessment of the relevant risks; and (3) are risk-based for the purpose of verifying the identity of each customer to the extent reasonable and practicable, enabling the bank to form a reasonable belief that it knows the true identity of each customer.
This Order was addressed in more detail during our AML/CFT Membership Group. Here’s a sample:
Published
2025/07/23
