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The Department of the Treasury and seven federal financial regulators this week issued proposed rules that would require certain financial institutions to establish minimum procedures for identifying and verifying the identity of customers seeking to open new financial accounts.
The proposed rules, implementing Sec. 326 of the USA Patriot Act, seek to protect the U.S. financial system from money laundering and terrorist financing. Additionally, by requiring identity verification procedures for all new accounts opened after the effective date of the final rules, the rules could also protect consumers against various forms of fraud, including identity theft.
The financial institutions subject to the proposed rules would be required to establish programs specifying procedures for obtaining identifying information from customers seeking to open new accounts.
Treasury and Federal Financial Regulators Issue Patriot Act Regulations and Customer Identification