MOBILE Act of 2018

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 MOBILE Act of 2018 2. Making online banking initiation legal and easy (a) Definitions In this section: (1) Affiliate The term affiliate 12 U.S.C. 1841 (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) Federally recognized Indian Tribe The term federally recognized Indian Tribe 25 U.S.C. 5131(a) (5) Financial institution The term financial institution (A) an insured depository institution; (B) an insured credit union; or (C) any affiliate of an insured depository institution or insured credit union. (6) Financial product or service The term financial product or service 12 U.S.C. 5481(15) (7) Insured credit union The term insured credit union 12 U.S.C. 1752 (8) Insured depository institution The term insured depository institution 12 U.S.C. 1813 (9) Online service The term online service (10) Personal identification card The term personal identification card (11) Personal information The term personal information (12) State The term State (13) Scan The term scan (b) Use of a driver's license or personal identification card (1) In general When an individual initiates a request through an online service to open an account with a financial institution or obtain a financial product or service from a financial institution, the financial institution may record personal information from a scan of the driver’s license or personal identification card of the individual, or make a copy or receive an image of the driver’s license or personal identification card of the individual, and store or retain such information in any electronic format for the purposes described in paragraph (2). (2) Uses of information Except as required to comply with Federal bank secrecy laws, a financial institution may only use the information obtained under paragraph (1)— (A) to verify the authenticity of the driver’s license or personal identification card; (B) to verify the identity of the individual; and (C) to comply with a legal requirement to record, retain, or transmit the personal information in connection with opening an account or obtaining a financial product or service. (3) Deletion of image A financial institution that makes a copy or receives an image of a driver’s license or personal identification card of an individual in accordance with paragraph (1) shall, after using the image for the purposes described in paragraph (2), permanently delete, within a reasonable amount of time— (A) any image of the driver’s license or personal identification card, as applicable; and (B) any copy of any such image. (c) Disclosure of personal information Nothing in this section shall be construed to amend, modify, or otherwise affect any State or Federal laws that govern a financial institution’s disclosure and security of personal information that is not publicly available. (d) Report Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall submit to Congress a report on— (1) the decrease in the unbanked or underbanked populations through the use of the technology described in this Act in rural communities and underserved populations; and (2) the increased incidence of violations of Federal or State laws described in subsection (c). (e) Relation to State law The provisions of this section shall preempt and supersede any State law that conflicts with a provision of this section, but only to the extent of such conflict.

Summary: MOBILE Act of 2018 This bill establishes requirements for the use of an individual's driver's license or personal identification card by financial institutions to open an account or obtain a financial product or service. It allows financial institutions to scan or copy personal information and store or retain it in any electronic format. Except as required to comply with federal bank secrecy laws, a financial institution may only use such information to: (1) verify the authenticity of the driver's license or personal identification card; (2) verify the identity of the individual; and (3) comply with a legal requirement to record, retain, or transmit the personal information in connection with opening an account or obtaining a financial product or service. After using the driver's license or personal information card for such purposes, the financial institution must permanently delete any image of the license or card within a reasonable amount of time. The Department of the Treasury shall report to Congress on: (1) the decrease in the unbanked or underbanked populations through the use of the technology described in this bill in rural communities and underserved populations, and (2) the increase in violations of federal or state laws relating to the disclosure and security of personal information by a financial institution.