The Financial Crimes Enforcement Network and federal banking agencies announced today they are seeking information regarding potentially allowing banks to collect only part of a Social Security number when customers open new accounts.
Under the Customer Identification Program rule, banks must collect a taxpayer identification number from U.S. customers who open accounts, which is usually their SSN. FinCEN is seeking input to understand the potential risks and benefits, as well as safeguards that could be established, if banks were permitted to collect partial SSN information and subsequently use reputable third-party sources to obtain the full SSN prior to account opening.
“The requirement for banks to collect identifying information from a customer prior to opening an account has been a long-standing component of a bank’s anti-money laundering program,” FinCEN Director Andrea Gacki said. “However, FinCEN recognizes the significant changes in technology and financial services that have taken place since promulgation of the CIP rule, and we welcome comments from interested parties as we explore ways to modernize the U.S. anti-money laundering/countering the financing of terrorism regime.”
