The Federal Deposit Insurance Corporation, the Office of Comptroller of the Currency, and the National Credit Union Administration have issued an order granting an exemption from a requirement of the Customer Identification Program (CIP) Rule. This decision was made with the concurrence of the Financial Crimes Enforcement Network. The CIP Rule, part of Section 326 of the USA PATRIOT Act, mandates that banks or credit unions obtain taxpayer identification number (TIN) information from customers before opening accounts. The new exemption allows these institutions to use alternative methods to collect TIN information from third parties instead.
This order applies to all entities supervised by these agencies. Since its initial issuance in 2003, there has been a significant evolution in how consumers access financial services. There is also increased reluctance among customers to provide their full TIN due to concerns about data breaches and identity theft. The exemption aims to offer flexibility for compliance with the CIP Rule while maintaining the requirement for risk-based procedures that ensure institutions can reasonably verify customer identities.
The use of this exemption is optional; entities are not obligated to adopt alternative methods for obtaining TIN information.
For further details, media contacts are available: Carroll Kim at FDIC (202-898-7389), Ashley Gordon at NCUA (703-346-9550), and Andrea Cox at OCC (202-649-6870).
The National Credit Union Administration is a federal agency created by Congress to regulate and supervise federal credit unions. It manages the National Credit Union Share Insurance Fund, insuring deposits for over 135 million account holders across federal and most state-chartered credit unions. The NCUA also focuses on consumer protection and financial literacy education.
For media inquiries regarding NCUA matters, contact OEACmail@ncua.gov or call 703-518-6330.