Q: Can a bank exclude from the definition of “customer” a person that has an existing account with its affiliate?
A: No, a person that has an existing account with a bank affiliate does not qualify as “a person who has an existing account with the bank” within the meaning of 31 C.F.R. § 103.121(a)(3)(ii)(C). However, the bank may be able to rely on its affiliate to perform elements of its CIP, as provided in 31 C.F.R. § 103.121(b)(6). (January 2004)