OCC 2002-34
OCC BULLETIN	

Subject:      Bank Secrecy Act/Anti-Money-Laundering
Description:  Notice of Proposed Rule Making-Customer 
              Identification Programs for Banks, Savings 
              Associations, and Credit Unions

Date:	      July 29, 2002
 
TO:  Chief Executive Officers and Compliance Officers of 
     All National Banks and Federal Branches and Agencies, 
     Department and Division Heads, and All Examining 
     Personnel

This bulletin transmits a notice of proposed rule making 
jointly published by the U.S. Treasury Department, through 
the Financial Crimes Enforcement Network (FinCEN), the 
federal banking agencies, and the National Credit Union 
Administration on July 23.  The attached proposal 
implements section 326 of the USA PATRIOT Act for banks, 
savings associations, and credit unions. Section 326 
regulations for other nonbank financial institutions were 
issued separately.

Section 326 requires regulations to be issued that set 
out minimum account opening identification and 
verification standards for financial institutions.  Final 
regulations must be effective by October 25.

Comments on the proposed rule may be submitted to the 
Office of the Comptroller of the Currency on or before 
September 6.  Because paper mail in the Washington area 
may be subject to delay, interested individuals are 
encouraged to e-mail or fax comments to

Internet address: regs.comments@occ.treas.gov
Fax number:  (202) 874-4448

The proposed regulation requires all banks to implement a 
customer identification program (CIP) that is appropriate 
given the bank's size, location, and type of business.  
The CIP must be written, incorporated into the bank's 
anti-money-laundering/Bank Secrecy Act program, and 
approved by the bank's board of directors or a committee 
of the board. The proposed regulation requires that the 
CIP include

· Risk-based procedures to verify the identity of 
  customers (persons seeking to open accounts and any 
  signatories on the accounts), including procedures that 

  - Specify the identifying information that the bank 
    must obtain from any customer, at a minimum:  name; 
    address; for individuals, date of birth; an 
    identification number, and

  - Describe how the bank will verify the information 
    provided by the customer either through documents or 
    by using nondocumentary methods.

· Procedures to record identifying information provided 
  by the customer, the methods and results of any measures 
  undertaken to verify identity, and the resolution of any 
  discrepancies in identifying information obtained.  
  Records must be maintained for five years after the date 
  the account is closed.

· Procedures for determining whether the customer appears 
  on any list of known or suspected terrorists or 
  terrorist organizations provided to the bank by any 
  federal government agency.

· Procedures for providing customers with adequate notice 
  that the bank is requesting information to verify their 
  identity.

You can find a link to the proposed regulation on the 
FinCEN Web site, http://www.treas.gov/fincen/.

Questions about the proposed regulation may be directed 
to your OCC supervisory office, the Compliance Division at 
(202) 874-4428, or the Legislative and Regulatory 
Activities Division at (202) 874-5090 or (202) 874-3295.



___________________________________
David G. Hammaker
Deputy Comptroller for Compliance

Attachment-67FR48290
[ http://www.occ.treas.gov/ftp/bulletin/2002-34a.pdf ]