MOBILE Act of 2016

To establish requirements for use of a driver’s license or personal identification card by certain financial institutions for opening an account or obtaining a financial product or service, and for other purposes. 1. Short title This Act may be cited as the Making Online Banking Initiation Legal and Easy Act of 2016 MOBILE Act of 2016 2. Definitions In this Act: (1) Affiliate The term affiliate 12 U.S.C. 1841(k) (2) Driver’s license The term driver’s license (3) Federal bank secrecy laws The term Federal bank secrecy laws (A) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b (B) section 123 of Public Law 91–508 (C) subchapter II of chapter 53 (4) Financial institution The term financial institution (A) an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 (B) an insured credit union, as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 (C) any affiliate of an insured depository institution or insured credit union. (5) Financial product or service The term financial product or service 12 U.S.C. 5481(15) (6) Personal identification card The term personal identification card (7) State The term State (8) Swipe The term swipe 3. Use of a driver’s license or personal identification card (a) In general With the consent of an individual, a financial institution may record personal information from a swipe of the individual’s driver’s license or personal identification card, or make a copy of the individual’s driver’s license or personal identification card, and store or retain such information in any electronic format for purposes of opening an account with the financial institution or obtaining a financial product or service from the financial institution. Except as required to comply with Federal bank secrecy laws, the financial institution may only use the personal information— (1) to verify the authenticity of the driver’s license or personal identification card with the State that issued the driver’s license or personal identification card; (2) to verify the identity of the individual; and (3) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening the account or obtaining the financial product or service. (b) Notice to consumer A financial institution that swipes or copies an individual’s driver’s license or personal identification card in accordance with subsection (a) shall inform the individual about the type of information collected. (c) Restrictions on use of information A financial institution that obtains information from a swipe or a copy of a driver’s license or personal identification card as described in subsection (a) may not sell, rent, transfer, or make the personal information available to another person (other than an affiliate). 4. Relation to State law The provisions of this Act shall preempt and supersede any State law that conflicts with a provision of this Act, but only to the extent of such conflict.

Summary: Making Online Banking Initiation Legal and Easy Act of 2016 or the MOBILE Act of 2016 This bill authorizes a financial institution, with an individual's consent, to record personal information from a swipe or copy of an individual's driver's license or personal identification card and store the information electronically for the purpose of verifying the authenticity of the driver's license or identification card, verifying the identity of the individual, or complying with legal requirements. Financial institutions must not sell, rent, transfer, or make the personal information available to another person, other than an affiliate.