FDIC Acting Chairman Travis Hill today expressed support for revisions to the Financial Crimes Enforcement Network’s Customer Identification Program, or CIP, rule to allow banks to collect only part of a Social Security number when customers open new accounts.
Under the CIP rule, banks must collect a taxpayer identification number from U.S. customers who open accounts, which is usually their SSN. FinCEN has sought public input to understand the potential risks and benefits 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 American Bankers Association previously provided feedback to FinCEN on such a proposal.
In a letter to FinCEN, Hill said many nonbank financial technology firms already use partial SSNs validated by third-party sources.
“Aligning regulatory requirements to modern onboarding processes is long overdue,” Hill said. “Federal authorities have long allowed banks to onboard credit card customers in this way; I support extending this approach more broadly.”
