What is the customer identification program?

The

customer identification program seeks to limit and combat terrorist financing and money washing by requires financial institutions to verify customer identities before opening new accounts. The program is part of the unification and strengthening of America by providing suitable tools for capturing and defending the Terrorism Act (USA Patriot), which was signed in October 2001. Within the program, financial institutions are obliged to collect and verify the identity of customers who open new accounts after October 2003. The customer identification program does not expand to certain customers such as government agencies or publicly traded companies that are in the jurisdiction of securities (SEC) .o Bank. In addition to banks, some institutions are needed to participate in the insurance company, credit union, trust and savings and loans. The term "customer" does not only concern the individual. The customer is defined as a legal entity and the definition of a legal entity can expand to groups and individuals. For example, a corpOrace, trust and assets are considered customers according to the legal definition.

The amount of information needed to verify the customer's identity within the customer identification program depends on the size and scope of the institution. However, there is a minimum amount of data to be collected. According to the program, the financial institution must collect the name, physical address, date of birth and identification number of the taxpayer before opening the account. For example, a person opens an account, introduce credit or opening a security box would have to provide the appropriate information required in the customer identification program. In addition, he would have to provide any further information that the institution considers necessary to verify identity.

The existing customer does not have to provide this information if the bank has a reasonable belief that it knows who the person is. In addition, a person who does not introduce a continuing relationship with the banLook, may not provide this information. A person who earns a check, buying a cash order or buying a check of the cash register may not provide this information within the program because these transactions do not form a continued relationship. However, there are times when the institution may request identification before providing these services. In such cases it is an institution, not a customer identification program that requires this information.