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 Visit Us! News and Views 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 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                          Customer Identification Program Rule - Address Confidentiality Programs, FIN-2009-R003, November 3, 2009 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. Return to Top