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| ##  | B |                         | ## De | ## F                    |   |
|  Su | a |                         | scrip | inal RuleCustomer Ident |   |
| bje | n |                         | tion: | ification Programs for  |   |
| ct: | k |                         |       | Banks, Savings Associat |   |
|     | S |                         |       | ions, and Credit Unions |   |
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+-----+---+-------------------------+-------+-------------------------+---+

**TO:** Chief Executive Officers and Compliance Officers of All National
Banks, Federal Branches and Agencies, Department and Division Heads, and
All Examining Personnel

This bulletin transmits a joint final rule published in the *Federal
Register* on May 9, 2003, that requires all banks to establish
procedures to verify the identity of customers. The final rule
implements section 326 of the USA PATRIOT Act for banks, savings
associations, credit unions and certain non-federally regulated banks
(banks) and is codified at 31 CFR 103.121. In addition, it transmits an
amendment of the Comptroller of the Currency's regulation 12 CFR 21.21,
which has been modified specifically to require national banks to
establish and maintain procedures to assure compliance with the new
final rule implementing section 326.

Banks must comply with the final rule by October 1.

The final rule requires all banks to implement a Customer Identification
Program (CIP) that is appropriate given the bank's size, location, and
type of business. The CIP must be written, incorporated into the bank's
BSA/AML program, and approved by the bank's board of directors. The
final rule requires that the CIP include:

-   Risk-based procedures to verify the identity of customers
    (generally, persons opening new accounts) including procedures that:

```{=html}
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```
-   Specify the identifying information that the bank must obtain from
    any customer, at a minimum, name, address, identification number,
    and, for individuals, date of birth;

-   Describe how the bank will verify the identity of the customer using
    documents, nondocumentary methods, or a combination of both methods;
    and

-   Respond to circumstances in which the bank cannot form a reasonable
    belief that it knows the true identity of the customer.

```{=html}
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```
-   Procedures to record the identifying information provided by the
    customer, a description of any document relied on, the methods and
    results of any measures undertaken to verify the identity of the
    customer, and the resolution of any substantive discrepancies
    discovered when verifying the identifying information obtained.
    Identifying information generally must be retained for five years
    after the account is closed. The remaining records need only be
    retained for five years after the records are made.

-   Procedures for determining whether the customer appears on any list
    of known or suspected terrorists or terrorist organizations provided
    to the bank by any federal government agency and designated as such
    by the Department of the Treasury in consultation with the federal
    functional regulators (326 list). The procedures must also require
    the bank to follow all federal directives issued in connection with
    such a list. (Currently no 326 list has been designated.)

-   Procedures for providing bank customers with adequate notice that
    the bank is requesting information to verify their identities. The
    final rule includes a model notice that a bank may use to provide
    notice to its customers, if appropriate.

The final rule also describes when a bank may rely on another financial
institution to perform all or part of the bank's CIP.

A link to the final rule can be found on the Financial Crimes
Enforcement Network (FinCEN) Web site at \[
www.fincen.gov/326bankfinal.pdf \].

Questions about the final regulation may be directed to your OCC
supervisory office, the Compliance Division at (202) 874-4428 or the
Legislative and Regulatory Activities Division at (202) 874-5090.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

David G. Hammaker

Deputy Comptroller for Compliance

Attachment: [68 FR
25090](http://www.occ.treas.gov/fr/fedregister/68fr25090.pdf)

\[ http://www.occ.treas.gov/fr/fedregister/68fr25090.pdf \]