CIP FAQs – How does the record retention period apply to a situation where a bank sells a loan but retains the servicing rights to the loan?

Compliance > BSA > FinCEN FAQs - CIP
Q:  How does the record retention period apply to a situation where a bank sells a loan but retains the servicing rights to the loan?
 
A:  When a bank sells a loan, the account is “closed” under the record retention provision (31 C.F.R. § 103.121(b)(3)(ii)), regardless of whether the bank retains the servicing rights to the loan.  Thus, a bank should keep the records of identifying information about a customer for five years after the date that the loan is sold, as required by 31 C.F.R. § 103.121(b)(3)(i)(A).  Any other record required by 31 C.F.R. § 103.121(b)(3)(i) must be kept for five years after the record is made.  (April 2005)
 

ADDITIONAL INFORMATION
This FAQ was excerpted from the Interagency Interpretive Guidance on CIP Requirements that can be found at the following link:  https://www.fincen.gov/sites/default/files/guidance/faqsfinalciprule.pdf
 

Add Feedback