http://www.bankersonline.com/infovault/i-infovault.html
examples:
Question: At your recent seminar in NJ you stated that we can not photocopy a customer's picture id before we open a savings/checking account. Which reg does this violate, please cite the section.
Answer: Regulation B prohibits collecting information about the customer's race and gender unless the loan is subject to the monitoring data requirements of 202.13 or HMDA. Section 202.5 deals with information collection restrictions. This is a credit-product restriction. Strictly speaking, it does not violate Regulation B to perform this type of identification for deposit accounts only, such as checking or savings. However, the risk is that when an overdraft line is offered or added, the information in the deposit file could migrate into the credit file and thus create the violation. Therefore, the best practice is to verify that the identification was checked but not to make a picture of it. But stand by. This could change with new Know Your Customer requirements under the USA PATRIOT Act. If so, those provisions would probably over-ride Reg B
Question: What should I do if a customer refuses to let me photocopy his drivers license for CIP purposes?
Answer: If your CIP Policy requires you to photocopy the DL, I guess you must refuse to open the account. However, CIP does not require your bank to photocopy DL's (nor does any other law). Ask yourself why you are doing this. If it is policy/procedure, you'll need to do it or get the policy/procedures changed.
In the past we would not retain a copy of an ID for a commercial loan or mortgage in the loan documentation folder. We recently received the following advice from counsel: "This is the new FDIC guidance on retaining copies of the license pursuant to the USA PATRIOT Act. It would clearly be permissible to retain copies provided that they are not used for an impermissible purpose. This rule would seem to apply to both residential and commercial."
From the horses (er, bankers) mouths...
