The Federal Reserve today announced it has joined other banking agencies in allowing banks to collect taxpayer identification number information from third parties rather than directly from bank customers when opening accounts.
Under the Customer Identification Program rule, banks must collect a TIN from U.S. customers who open accounts, which is usually their Social Security number. Last month, the Financial Crimes Enforcement Network, FDIC, Office of the Comptroller of the Currency and National Credit Union Administration gave financial institutions the option to collect TIN information from a third party rather than the customer as long as the bank otherwise complies with the CIP rule.
The Fed did not join the other agencies in adopting the exception until today. In a statement, the Fed noted the collection method is optional and “banks are not required to use alternative collection methods.”
The American Bankers Association did not take a position on the rule change when it was proposed earlier this year. However, the association offered comments informing FinCEN about relevant risks and benefits, noting that any change must carefully balance efficiency and effectiveness, including minimizing compliance costs.
