News: FDIC Acting chair pushes the fincen to allow streamlined customer aboard US banks

By Paul O’Donoghue, senior correspondent

FDIC -functioning President Travis Hill has called on the Fincen, the US Treasury AML unit, to facilitate the requirements for opening bank accounts by revising his customer identification program (CIP).

Currently, banks need to collect the identification number of a full taxpayer – usually a social security number (SSN) – from US customers when they open accounts. Hill suggested to allow banks to collect only part of one SSN, with the rest verified through a trusted third party, such as a credit agency.

“Many banks have requested the opportunity to board customers in this way. At the moment, some believe that the current CIP rule does not allow such an approach, ”Hill said in a letter to the finc. He said fintech companies often allow customers to only deliver the last four digits of their SSN and rely on third-party verification for the full number.

Hill added that many fintech companies are already using partial SSN verification. “Adaptation of legislative requirements for modern onboarding processes is long too late,” he said. “Federal authorities have long allowed the banks aboard credit card customers in this way; I support expanding this approach more broadly. “

The fincen is currently Considering changing the CIP rules.

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