At what point does the CIP rule apply when the account is a loan?

The rule applies to customers who open an account. When the account is a loan, the account is opened when the bank enters into an enforceable agreement to provide a loan to the customer.

Who is the customer when an account is opened by an individual who has power of attorney for a competent person who is the named owner of the account?

When an account is opened by an individual who has power of attorney for a competent person, the individual with power of attorney is merely an agent acting on behalf of the person who opens the account. Therefore, the customer will be the named owner of the account rather than the individual with power of attorney over the account. But the individual with power of attorney is the customer if the account is opened for a person who lacks legal capacity (e.g., someone who has been declared incompetent or is a minor).

Is a person who becomes co-owner of an existing deposit account a customer to whom the CIP rule applies?

Yes, anyone who is a co-owner of an existing deposit account is a customer subject to the CIP rule because that person is establishing a new account relationship with the bank.

Is a new borrower who is substituted for an existing borrower through an assumption of a loan a customer to whom the CIP rule applies?

Yes, a new borrower who is substituted for an existing borrower through an assumption of a loan is a customer because the new borrower is establishing a new account relationship with the bank.

A bank is an agent for a (bank) credit card issuer. The cards are co-branded; the two banks share in the revenue from the cards issued. However, the issuer approves the credit card applications and handles collections. Is a person who obtains a credit card a customer of the agent bank or the card issuer?

A person who receives a credit card is receiving an extension of credit from, and therefore is establishing an account with, the issuing bank. The agent bank is compensated by the issuing bank and not by the customer. For these reasons, the issuing bank is responsible for ensuring that it applies its CIP to the customer. However, the agent bank may perform parts of the CIP on behalf of the issuing bank. As with any other responsibility performed by an agent, the issuing bank ultimately is responsible for the agent's compliance with the requirements of the CIP rule.

Does the exclusion from the definition of customer for a person with an existing account extend to a person who has had an account with the bank in the last 12 months but who no longer has an account?

This provision only excludes from the definition of customer a person who at the time a new account is opened already "has an existing account with the bank," and only if the bank has a reasonable belief that it knows the true identity of the person. A person would not be deemed to have an existing account at the bank if the person had a loan, paid it off, and 12 months later obtained a new loan.

Can a bank exclude from the definition of customer a person who has an existing account with its affiliate?

No, a person who has an existing account with a bank affiliate does not qualify as a person who has an existing account with the bank. However, the bank may be able to rely on its affiliate to perform elements of its CIP.

What address should be obtained for customers who live in rural areas who do not have a residential or business address? Is a rural route number acceptable?

Yes, the number on the roadside mailbox on a rural route is acceptable as an address. A rural route number, unlike a post office box number, is a description of the approximate area where the customer can be located. In the absence of such a number, and in the absence of a residential or business address for next of kin or another contact individual, a description of the customer's physical location will suffice.

Can a bank open an account for a U.S. person without a Taxpayer Identification Number (TIN)?

No, the bank cannot open an account unless the customer has applied for a TIN, the bank confirms that the application was filed before the customer opened the account, and the bank obtains the TIN within a reasonable period of time after the account is opened. You may also open an account for a person who lacks legal capacity by obtaining the identifying information, including TIN, of the individual who opens an account for that person.

Must a bank verify the accuracy of all of the identifying information it collects for its CIP?

Your bank does not have to establish the accuracy of every element of identifying information obtained, but it must do so for enough information to form a reasonable belief it knows the true identity of the customer.