TopCompliance ALERT Logo
                                   FinCEN issues New CIP Policy for ACP Accounts

WEBSITE
QUICK LINKS


HOME

Mortgage Compliance

Service Presentations

CORE Compliance

About Us

Our Clientele

News & Views Posts

Archive

Library

Contact Us




Website
LCG - Link

Visit Us!
News and Views
LCG Weblog - 1
Visit Us!

PRESENTATIONS

Mortgage Compliance

Due Diligence

Forensic Services

FHA Examinations

Legal Reviews/Remedies

CORE Compliance Matrix

Loss Mitigation

Quality Control

HMDA / CRA

Licensing

Policy Guides/QC Plans

IT and IS

_______________

516-442-3456

Email Us




Join Our Mailing List
Overview

The U.S. Treasury Department's Financial Crimes Enforcement Network ("FinCEN"), on November 3, 2009, provided guidance to financial institutions regarding application of customer identification programs ("CIPs") to customers who have been issued a post office box through a state address confidentiality program ("ACP"). (Offered by 31 States, ACPs provide a substitute address for victims of domestic violence, sexual assault and stalking and help participants keep their physical address confidential. Substitute addresses are accepted by state and local agencies.)

Under the CIP rules, a financial institution must obtain a street address from each individual customer who opens an account. If the individual customer does not have a residential or business street address, the financial institution may instead accept the street address of the customer's next of kin or another contact individual.

FinCEN has ruled that it will allow a financial institution to treat a person who participates in a state-created ACP as an individual who does not have a street address.

Our recommendation:

Identity Theft Prevention Program: financial institutions that utilize CIP procedures in their Identity Theft Prevention Program should update their policies accordingly.
Highlights

In performing its CIP, the financial institution should obtain the street address of the ACP's sponsoring agency, treating that agency as another contact individual for the customer opening the account.

Visit our Library for Issuance

New Rule

FinCEN now authorizes the following exception to the requirement to obtain a customer's residential or business street address:

A customer who participates in a state-created ACP shall be treated as not having a residential or business street address and a secretary of state, or other state entity serving as a designated agent of the customer consistent with the terms of the ACP, will act as another contact individual for the purpose of complying with FinCEN's rules.

Therefore, a a financial institution should collect the street address of the ACP sponsoring agency for purposes of meeting its CIP address requirement.

[Authority: 31 U.S.C. 5318(a)(5) and 31 C.F.R. 103.55(a)]


Visit our Library for Issuance

 Visit our Library for Issuance      Action Button Image 1                   


Customer Identification Program Rule - Address Confidentiality Programs, FIN-2009-R003, November 3, 2009

Action Button Image 1


Lenders Compliance Group
is a full-service, mortgage risk management firm, providing professional guidance to financial institutions in all areas of mortgage compliance.

Specializations

Mortgage Compliance
Compliance Audits
Forensic Loan Audits
FHA Examinations
State and Federal Examinations
Fannie/Freddie/Ginnie Applications
Mortgage Due Diligence
Legal Reviews & Remedies
Loss Mitigation Compliance
Quality Control
HMDA & CRA Reviews
IT & IS Compliance
Statutory Licensing


This communication is sent to our valued clients and colleagues, who regularly receive our Advisory Bulletins, Mortgage Compliance Updates,  Compliance Alerts, Licensing Alerts, and News and Views.

These publications are free to subscribers.

2010 Lenders Compliance Group, Inc. All Rights Reserved.