CIP FAQs - Does the exclusion from the definition of “customer” for a person with an existing account extend to a person who has had an account with the bank in the last twelve months but who no longer has an account?

Compliance > BSA > FinCEN FAQs - CIP
Q:  Does the exclusion from the definition of “customer” in 31 C.F.R. § 103.121(a)(3)(ii)(C) for a person with an existing account extend to a person who has had an account with the bank in the last twelve months but who no longer has an account?

A:  No, this provision only excludes from the definition of “customer” a person that at the time a new account is opened currently “has an existing account with the bank,” and only if the bank has a reasonable belief that it knows the true identity of the person. Therefore, for example, when a person has a deposit account and subsequently obtains a loan, the person has an existing account with the bank. Conversely, a person would not be deemed to have an existing account at the bank if the person had a loan, paid it off, and twelve months later obtains a new loan.  (January 2004)

 
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
 

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